Treasury Rates for March 15th 2021

Security	Interest Rates
91 – Day Bill	12.9996%
182 – Day Bill	13.8491%
364 – Day Bill	16.6661%

The yields on the government’s short-term assets extended their downward trajectory this week despite a 40 basis points (bps) climb in the recent inflation figure. Data released by the Ghana Statistical Service indicated that the rise in the rate of inflation for February was driven largely by price increases in non-food inflation items as prices of petroleum products continue to rise.

The rate of decline in the yield on the 91-day bill slowed this week after sustaining a little of 1 percentage point lose so far in 2021. The yield on the 91-day bill declined from 13.0488% last week to 12.9996% this week, its lowest since August, 2017.

The 182-day suffered a 1 bps decline this week to extend its weekly downward trend for the ninth consecutive time. It tumbled from 13.8633% posted last week to 13.8491% this week.

The yield on the 364-day bill fell by 9 bps this week from 16.7571 recorded last week to 16.6661%.

Week-on-Week Changes for 15^th March, 2021

Term	Previous	Current	Change	Percentage Change
91 – Day	13.0488%	12.9996%	-0.05	-0.3770%
182 – Day	13.8633%	13.8491%	-0.01	-0.1024%
364 – Day	16.7571%	16.6661%	-0.09	-0.5431%

Auction results from Bank of Ghana (BoG) tender 1737 showed sustained investor confidence in government assets as demand in 2021 continue to beat the government’s target amount.

A total of GHC 1,802.58 million bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHC 1,100 million. The government, however, accepted GHC 1,484.25 million worth of the bids tendered.

Next week, the government will be expected to reduce its intended target amount to raise a total of GHC 890.00 million from 91-day and 182-day bills.