Treasury Rates for May 17th 2021

Security	Interest Rates
91 – Day Bill	12.7880%
182 – Day Bill	13.5522%
364 – Day Bill	16.4194%
5 – Year Fixed Rate Bond	18.8000%

The yields on the government’s short-term Treasury assets further extended their downward streak in line with the drastic fall in the recent inflation reading. Data released by the Ghana Statistical Service (GSS) last week indicated that the consumer price index fell to its lowest in more than 1 year as food inflation registered a significant decline.

The yield on the 91-day bill was little changed this week as it fell from 12.7898% last week to 12.7880% this week.

After posting a brief rise last week, the 182-day bill lost steam this weak as it declined by 2 basis points (bps) to erase part of previous week’s 4 bps gain. It declined to 13.5522% from 13.5707% posted last week.

The 364-day bill similarly failed to gather momentum to build on its previous issuance’s gain after it weakened by 11 bps this week. It dipped from 16.5256% registered last week to 16.4194% this week.

Week-on-Week Changes for 17^th May, 2021

Term	Previous	Current	Change	Percentage Change	Year-to-Date
91 – Day	12.7898%	12.7880%	0.00	-0.01%	-9.28%
182 – Day	13.5707%	13.5522%	-0.02	-0.14%	-4.22%
364 – Day	16.5256%	16.4194%	-0.11	-0.64%	-3.21%
5 – Year	18.3000%	18.8000%	0.50	2.73%	2.73%

Auction results from Bank of Ghana (BoG) tender 1746 indicated that after the government failed to achieve its intended target amount last week, demand rose this week to beat the government’s expectations despite the continuous drop in Treasury yields.

A total of GHC 1,319.14 million worth of bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHC 1,278.00 million. The government, however, accepted GHC 1,226.26 worth of total bids tendered.

As per the Government’s issuance calendar for the second quarter of the year, a 5-year paper was issued seeking to raise GHC 1,000 from the domestic market for various government expenditures as well as to retire maturing papers. The yield on the paper rose from 18.3000% at its last issuance in March to 18.8000% this week as investor’s demand higher compensation for long-term commitments.

Next week, the government will be seeking to raise a total of GHC 791.00 million from 91-day and 182-day bills.