Treasury Rates for February 1st 2021

Security	Interest Rates
91 – Day Bill	14.0585%
182 – Day Bill	14.0926%
364 – Day Bill	16.9596%
6 – Year Fixed Rate Bond	19.2500%

Short-term Treasury yields remained sluggish this week as investors continue to take safety in government assets amidst a resurgence in COVID-19 cases. The yields on the 91-day and 182-day bills extended their losing streak for the third consecutive time this week as investors continue to oversubscribe the government’s assets.

The 91-day bill weakened by 2 basis points (bps) this week to build on previous week’s 1 bps dip. It declined to 14.0585% this week from 14.0827% recorded last week.

The yield on the 182-day bill recorded its biggest decline so far in 2021 this week after it fell from 14.1328% recorded last week to 14.0926% this week, its lowest since mid-September, 2020.

The 364-day bill was little changed this week as it fell marginally to 16.9596% from 16.9645% posted last week.

Week-on-Week Changes for 1^st February, January, 20

Term	Previous	Current	Change	Percentage Change
91 – Day	14.0827%	14.0585%	-0.02	-0.1718%
182 – Day	14.1328%	14.0926%	-0.04	-0.2844%
364 – Day	16.9645%	16.9596%	0.00	-0.0289%

Auction results from Bank of Ghana (BoG) tender 1731 further showed a strong demand for the government’s short-term assets on expectations of higher inflationary figures.

A total of GHC 1,892.95 million bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHC 1,129.00 million. The government, however, accepted only GHC 1,221.11 million of the total bids tendered.

Next week, the government will be expected to significantly reduce its intended target amount to raise a total of GHC 856.00 million from 91-day and 182-day bills.