Treasury Rates for June 21st 2021

Security	Interest Rates
91 – Day Bill	12.6269%
182 – Day Bill	13.3897%
7 – Year Fixed Rate Bond	18.1000%

The yields on the Government’s short-term Treasury assets extended their losing streak this week as a pick-up in investment activities coupled with sluggish inflationary figures continue to send Treasury yields to record lows.

The yield on the 91-day bill declined by 1 basis point (bps) this week to build on previous week’s 7 bps dip. It fell to 12.6269% this week from 12.6395% posted last week.

The 182-day bill after posting a marginal decline of 1 bps last week, fell by 3 bps this week as its year-to-date depreciation further worsened to 5.4%. It tumbled from 13.4203% registered last week to 13.3897% this week, its worst in more than 3 years.

Week-on-Week Changes for 21^st June, 2021

Term	Previous	Current	Change	Percentage Change	Year-to-Date
91 – Day	12.6395%	12.6269%	-0.01	-0.10%	-10.42%
182 – Day	13.4203%	13.3897%	-0.03	-0.23%	-5.37%
7 – Year	20.5000%	18.1000%	-2.40	-11.71%

Auction results from Bank of Ghana (BoG) tender 1751 showed that demand this week followed the recent spike in demand for Treasury assets as most economic activities returns to normalcy thus boosting investor confidence.

A total of GHC 1,224.32 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 1,175.00 million. The government accepted all bids tendered.

The government per its issuance calendar, issued a 7-year paper in which it sought to raise GHC 1,800.00 million from the domestic market. The bond which was marketed to both local and offshore investors received bids in excess of the target amount as it was oversubscribed by a little over 3%. In line with the recent decline in rates, the yield on the long-term paper followed suit as it plunged from 20.50% at its last issuance in November, 2020 to 18.10%.

Next week, the government will be seeking to raise a total of GHC 1,216.00 million from 91-day, 182-day, and 364-day bills.