Treasury Rates for April 19th 2021

Security	Interest Rates
91 – Day Bill	12.8453%
182 – Day Bill	13.6175%

The government’s short-term Treasury instruments further plummeted this week despite the latest inflation figure ending the first quarter of the year above the central bank’s medium-term inflation target band of 8.0% ± 2.0%. Expectations of higher inflationary figures have failed to push up treasury yields as high demand continues to mount downward pressures on Treasury yields.

The yield on the 91-day bill weakened by a basis point (bps) this week to build on previous week’s 4 bps loss. It dipped from 12.8098% posted last week to 12.7949% this week.

The yield on the 182-day lost 7 bps this week, adding onto its accumulated loss of 54 bps so far in 2021. It declined to 13.5348% this week from 13.6066% recorded last week.

Week-on-Week Changes for 19^th April, 2021

Term	Previous	Current	Change	Percentage Change
91 – Day	12.8098%	12.7949%	-0.01	-0.1163%
182 – Day	13.6066%	13.5348%	-0.07	-0.5277%

Auction results from Bank of Ghana (BoG) tender 1742 showed demand for the government’s short-term assets cooling off after a strong demand of the first two months in the year.

A total of GHC 886.47 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 950.00 million. The government subsequently accepted all bids tendered.

Next week, the government will be expected to increase its target amount to raise a total of GHC 1,135.00 million from 91-day, 182-day, and 364-days bills.