Treasury Rates for March 22nd 2021

Security	Interest Rates
91 – Day Bill	12.8962%
182 – Day Bill	13.6573%
3 – Year Fixed Rate Bond	17.7000%

The yields on the government’s short-term assets extended their downward trajectory this week as demand for Treasury assets continue to come in excess of the government’s targets. The decline in the yields on the government’s short-term assets have seen the 91-day bill register over 1 percentage points decline whilst the 182-day has recorded 50 basis points (bps) decline so far in 2021.

The yield on the 91-day bill dipped by 10 bps this week to build on previous week’s 5 bps loss. It fell from 12.9996% last week to 12.8962% this week, its lowest since August, 2017.

The 182-day failed to post its first weekly gain in 2021 as it further weakened by 19 bps this week. It dipped for the tenth consecutive time in 2021 to 13.6573% from 13.84911%.

Week-on-Week Changes for 22^nd March, 2021

Term	Previous	Current	Change	Percentage Change
91 – Day	12.9996%	12.8962%	-0.10	-0.7954%
182 – Day	13.8491%	13.6573%	-0.19	-1.3849%
3 – Year	19.2500%	17.7000%	-1.55	-8.0519%

Auction results from Bank of Ghana (BoG) tender 1738 further showed a continuous strong demand for the government’s short-term assets as offshore investors show interests in emerging markets assets following a pick-up in investor risk appetite.

A total of GHC 1,119.14 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 890.00 million. The government subsequently accepted all bids tendered.

The government narrowly missed its target for its 3-year fixed rate bond this week despite the yield on the medium-term paper declining by over 150 bps. A total of GHC 1,610.11 million worth of bids were tendered and accepted by the government as against an intended target amount of GHC 1,700.00 million. The yield on the paper plunged to 17.7000% from 19.2500% at its last issuance in late 2020.

Next week, the government will be expected to significantly increase its intended target amount to raise a total of GHC 1,342.00 million from 91-day, 182-day, and 364-day bills.