Treasury Rates for December 21st 2020

Security	Interest Rates
91 – Day Bill	14.0866%
182 – Day Bill	14.1283%
364 – Day Bill	16.9968%
3 – Year Fixed Rate Bond	19.2500%

This week, short-term Government of Ghana Treasury bills rates rose from previous week’s performance despite a continuous drop in the consumer price index. Inflation rate for November declined into the Bank of Ghana’s medium-term inflation target band of 8.0% ± 2.0% for the first time since March, 2020.

The 91-day bill strengthened by a 1 basis point (bps) this week to build on previous week’s 1 bps. It rose from 14.0774% posted last week to 14.0866% this week, its highest in more than eight months.

The yield on the 182-day bill gained by 2 bps this week to recover from previous week’s 1 bps dip. It rose from 14.1129% posted last week to 14.1283% this week.

The 364-day hardened by a 1 bps this week to build on previous week’s 2 bps. It rose to 16.9968% this week from 16.9883%.

Week-on-Week Changes for 21^st December, 2020

	14-Dec-20	21-Dec-20	CHANGE	PERCENTAGE CHANGE
91 – Day	14.0774%	14.0866%	0.01	0.0654%
182 – Day	14.1129%	14.1283%	0.02	0.1091%

Auction results from Bank of Ghana (BoG) tender 1725 further indicated that after several weeks of continued strong demand for government assets, demand this week was sluggish as consumption levels begin to rise ahead of the yuletide.

A total of GHC 971.75 million bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHC 1,799.00 million. The government accepted all bids tendered.

The government issued a 3-year fixed-rate bond as part of its issuance calendar for the last quarter of the year. Demand for the medium-term paper came in strong as it was oversubscribed by a little over 100%. The yield on the paper remained unchanged at 19.2500% as a total of GHC 1,663.18 million bids were tendered and accepted against a target of GHC 800.00 million.

The government also reopened its shelf offering for the 20-year bond which raised GHC 176.47 million this week at the existing rate of 20.2000%.

Next week, the government will be expected to reduce its intended target amount to raise a total of GHC 1,011.00 million from 91-day and 182-day bills.