Security | Interest Rates |
91 – Day Bill | 14.0383 % |
182 – Day Bill | 14.0851 % |
364 – Day Bill | 16.9974 % |
5 – Year Fixed Rate Bond | 19.8500 % |
The yields on both the 91-day and 182-day bills fell in line with easing price pressures on food items. The latest consumer price data released by the Ghana Statistical Service showed that the rate of inflation declined to 10.4% in September from 10.5%, its slowest in 5 months.
The 91-day bill after three consecutive weeks of consecutive strengthening lost traction this week as it declined by 2 basis points (bps) to erase part of previous weeks’ gains. It fell to 14.0383% from 14.0536% posted last week.
The 182-day bill extended its weekly losses for the third consecutive time as it dipped by 2 bps this week to build on previous week’s 3 bps decline. It weakened from 14.1092% posted last week to 14.0851% this week, its lowest in 7 weeks.
The yield on the 364-day paper gained 2 bps this week to inch towards pre-COVID levels. It rose from 16.9804% recorded at its last issuance to 16.9974% this week.
Week-on-Week Changes for 19th October, 2020
12-Oct-20 | 19-Oct-20 | CHANGE | PERCENTAGE CHANGE | |
91 – Day | 14.0536% | 14.0383% | -0.02 | -0.1089% |
182 – Day | 14.1092% | 14.0851% | -0.02 | -0.1708% |
Auction results from Bank of Ghana (BoG) tender 1716 further showed that demand for the government’s short-term debt assets continued to remain strong as total bids tendered rose to beat the government’s target after similar performances in the preceding weeks.
A total of GHC 819.62 million bids were tendered for the 91-day, 182-day, and 364-days bills against the government’s target amount of GHC 733.00 million. The government accepted only GHC 793.90 million of total bids tendered.
The government also issued a 5-year fixed-rate bond as part of its issuance calendar for the remaining quarter of the year in which it sought to raise GHC 1,000.00 million from the domestic market. The government could not realize its intended target amount as a total of GHC 616.30 million were tendered and subsequently accepted despite the yield on the bond improving from 19.25% at its last issuance in July to 19.85%.
Next week, the government will be expected to significantly increase its intended target amount to raise a total of GHC 1,027.00 million from 91-day and 182-day.