Treasury Rates for February 8th 2021

Security	Interest Rates
91 – Day Bill	13.8166%
182 – Day Bill	14.0102%

This week, short-term Government of Ghana Treasury bill rates extended its downward trajectory for the fourth consecutive time as the yield on the 91-day bill tumbled by the most significant dip in more than 9 months. This comes after the monetary policy committee of the Bank of Ghana stalled the prime rate for the fifth consecutive time amid risks to the inflationary outlook.

The 91-day bill plunged by 24 basis points (bps) this week to build on previous week’s 2 bps dip. It fell from 14.0585% posted last week to 13.8166% this week, its lowest since mid-October, 2018.

The yield on the 182-day bill registered its biggest weekly decline since April, 2020 as it plummeted by 8 bps this week to build on previous week’s 4 bps dip. It declined from 14.0926% posted last week to 14.0102% this week, its lowest in more than 6 months.

Week-on-Week Changes for 8^th February, January, 20

Term	Previous	Current	Change	Percentage Change
91 – Day	14.0585%	13.8166%	-0.24	-1.7207%
182 – Day	14.0926%	14.0102%	-0.08	-0.5847%

Auction results from Bank of Ghana (BoG) tender 1732 further showed a sustained strong demand for the government’s short-term assets as investors continue to flee to safe-haven assets amid a resurgence in COVID-19 cases.

A total of GHC 1,679.41 million bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 856.00 million. A total of GHC 1,076.77 million bids out of the total bids tendered were consequently accepted.

Next week, the government will be expected to significantly increase its intended target amount to raise a total of GHC 1,213.00 million from 91-day, 182-day, and 364-bills.