Treasury Rates for November 9th 2020

Security	Interest Rates
91 – Day Bill	14.0642%
182 – Day Bill	14.1304%
364 – Day Bill	16.9714%
2-Year Fixed Rate Note	18.5000%

Ahead of the announcement of consumer prices data later in the week, short-term Government of Ghana Treasury bills rates rose marginally from previous week’s levels as demand for the government’s assets continue to remain strong. Investors have over the past one month increased their purchases of government assets amid uncertainties going into the December elections.

The 91-day bill was little changed this week as it rose marginally to 14.0642% from 14.0595% posted last week.

The yield on the 182-day bill gained 3 basis points (bps) this week to recover from previous week’s 2 bps dip. It rose from 14.0970% posted last week to 14.1304% this week, its highest in 5 weeks.

The 364-day rose marginally this week from 16.9700% posted last week to 16.9714% this week.

Week-on-Week Changes for 9^th November, 2020

	2-Nov-20	9-Nov-20	CHANGE	PERCENTAGE CHANGE
91 – Day	14.0595%	14.0642%	0.00	0.0334%
182 – Day	14.0970%	14.1304%	0.03	0.2369%

Auction results from Bank of Ghana (BoG) tender 1719 further affirmed a continuous rise in demand for the government’s assets despite expectations of a slower inflation rate, as demand rose this week to beat the government’s target amount after weeks of strong demand.

A total of GHC 1,155.92 million bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHC 1,043.00 million. The government accepted all bids tendered.

The government as part of its issuance calendar for the last quarter of the year, issued a 2-year fixed-rate note this week intending to raise GHC 1,500.00 million from the domestic market. The rate on the medium-term paper remained unchanged at 18.5000% from its previous issuance. The government accepted all GHC 768.08 million bids tendered for the paper.

Next week, the government will be expected to reduce its intended target amount to raise a total of GHC 783.00 million from 91-day and 182-day bills.