Treasury Rates for November 16th 2020

Security	Interest Rates
91 – Day Bill	14.0054%
182 – Day Bill	14.1083%
7 – Year Fixed Rate Bond	20.5000%

Short-term Government of Ghana (GoG) Treasury bill rates tumbled this week in line with the continuous drop in the consumer price index. Recent inflation figures reported by the Ghana Statistical Service showed that the rate of inflation fell for the second consecutive time from 10.4% in September to 10.1% in October.

The 91-day bill ended three weeks’ of consecutive strengthening as it plunged by 6 basis points this week. It fell from 14.0642% posted last week to 14.0054% this week, its lowest in more than 3 months.

The yield on the 182-day bill dipped by 2 bps this week to erase part of previous week’s 3 bps gain. It fell to 14.1083% this week from 14.1304% posted last week.

Week-on-Week Changes for 16^th November, 2020

	9-Nov-20	16-Nov-20	CHANGE	PERCENTAGE CHANGE
91 – Day	14.0642%	14.0054%	-0.06	-0.4181%
182 – Day	14.1304%	14.1083%	-0.02	-0.1564%

Auction results from Bank of Ghana (BoG) tender 1720 further indicated that demand for the government’s asset rose to beat the target amount despite expectations of slower inflation rates. Demand for government’s assets have in the past few weeks consistently exceeded the government’s target as investors take safety in safe assets ahead of the December general elections.

A total of GHC 1,133.22 million bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 783.00 million. The government accepted all bids tendered.

The government as part of its issuance calendar for the last quarter of the year, issued a 7-year fixed-rate bond in which it aimed to raise GHC 950.00 million from the domestic market. The long-term bond was oversubscribed by 8% as a total of GHC 1,027.43 million bids were tendered for the paper. The rate on the bond rose from 20.0000% at its last issuance in mid-August to 20.5000%.

Next week, the government will be expected to increase its intended target amount to raise a total of GHC 985.00 million from 91-day and 182-day bills.