Treasury Rates for March 1st 2021

Security	Interest Rates
91 – Day Bill	13.2690%
182 – Day Bill	13.8917%
364 – Day Bill	16.7951%

After seven consecutive weeks of registering a downward trend, the yield on the 91-day bill posted its first weekly rise this week on expectations of higher inflation figures beyond January following upward adjustments in fuel price at the pumps. The yields on the 182-day and 364-day bills, however, failed to recover some of its earlier losses as strong demand for government assets continue to send Treasury yields lower.

The 91-day bill rose by 16 basis points (bps) this week to recover part of its nearly 1 percentage point decline registered so far in 2021. It rose to 13.2690% this week from 13.1130% posted last week.

The 182-day bill extended its weekly declines for the eighth consecutive time this week after it tumbled by 6 bps this week to build on previous week’s 1 bps decline. It fell from 13.9503% posted last week to 13.8917% this week, its lowest since early September, 2018.

The yield on the 364-day bill shed losses this week as it failed to recover from previous weeks’ losses. It declined to 16.7951% this week from 16.8592% posted last week.

Week-on-Week Changes for 1^st March, 2021

Term	Previous	Current	Change	Percentage Change
91 – Day	13.1130%	13.2690%	0.16	1.1897%
182 – Day	13.9503%	13.8917%	-0.06	-0.4201%
364 – Day	16.8592%	16.7951%	-0.06	-0.3802%

Auction results from Bank of Ghana (BoG) tender 1735 further confirmed intense expression of interest in government assets as demand continues to come in excess of the target amount.

A total of GHC 1,528.22 million bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHC 889 million. The government accepted all bids tendered for the 182-day and 364-day bills. GHC 1,013.90 million worth of bids were accepted for the 91-day bill against GHC 1,168.58 million bids tendered.

Next week, the government will be expected to take advantage of the high demand to significantly increase its intended target amount to raise a total of GHC 1,252.00 million from 91-day, 182-day, and 364-day bills.