Treasury Rates for November 30th 2020

Security	Interest Rates
91 – Day Bill	14.0749%
182 – Day Bill	14.1371%
364 – Day Bill	16.9670%
3 – Year Fixed Rate Bond	19.2500%

The yields on the government’s 91-day and 182-day bills rose marginally this week to build on previous week’s gains despite declining consumer prices. Treasury yields have begun posting some marginal increases buoyed by plans by the government to increase its borrowing to bridge a widened fiscal gap.

The 91-day bill gained by 1 basis point (bps) this week to build on previous week’s 6 bps. It rose from 14.0645% posted last week to 14.0749% this week, its highest in 8 months.

The yield on the 182-day similarly gained by 1 bps this week to build on 2 bps gain recorded last week. It rose to 14.1371% this week from 14.1274% recorded last week.

The 364-day bill was little changed this week as it declined marginally from 16.9714% at its last issuance date to 16.9670% this week.

Week-on-Week Changes for 30^th November, 2020

	23-Nov-20	30-Nov-20	CHANGE	PERCENTAGE CHANGE
91 – Day	14.0645%	14.0749%	0.01	0.0739%
182 – Day	14.1274%	14.1371%	0.01	0.0687%

Auction results from Bank of Ghana (BoG) tender 1722 showed that demand for Treasury assets dwindled this week on growing expectations of slower inflation figures.

A total of GHC 915.31 million bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHC 984.00 million. The government accepted all bids tendered.

A 3-year fixed rate-bond was issued as part of the government’s issuance calendar for the fourth quarter of the year which aimed to raise GHC 800.00 million from the domestic market. Demand was sluggish as a total of GHC 650.16 million bids were tendered and accepted. The rate on the paper rose from 19.0000% in September to 19.2500%, its highest since pre-COVID times.

Next week, the government will be expected to increase its intended target amount to raise a total of GHC 1,012.00 million from 91-day and 182-day bills.