Treasury Rates for January 18th 2021

Security	Interest Rates
91 – Day Bill	14.0881%
182 – Day Bill	14.1431%

Short-term Government of Ghana (GoG) Treasury bills struggled this week to post a comeback from previous week’s dip despite a jump in the latest consumer price index as heightened spending activities in December resulted in the inflation rate climb above the Bank of Ghana’s medium-term inflation target band. Data released by the Ghana Statistical Services showed that the inflation rate for December rose to 10.4% from 9.8% as intense consumption activities drove the rate of inflation to a 3 month high.

This week, the yield on the 91-day bill was little changed as it fell marginally to 14.0881% from 14.0930% recorded last week.

The 182-day bill also remained largely unchanged as it failed to recover from previous week’s 1 basis point decline. It fell from 14.1438% posted last week to 14.1431% this week.

Week-on-Week Changes for 18^th January, 2021

Term	Previous	Current	Change	Percentage Change
91 – Day	14.0930%	14.0881%	0.00	-0.0348%
182 – Day	14.1438%	14.1431%	0.00	-0.0049%

Auction results from Bank of Ghana (BoG) tender 1729 further indicated that demand for the government’s short-term papers maintained its traction as investment activities gradually pick up on expectation of higher inflation figures.

A total of GHC 988.88 million bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 756.00 million. The government accepted all bids tendered.

Next week, the government will be expected to increase its intended target amount to raise a total of GHC 1,235.00 million from 91-day, 182-day, and 364-day bills.