Treasury Rates for July 19th 2021

Security	Interest Rates
91 – Day Bill	12.5582%
182 – Day Bill	13.3590%
10 – Year Fixed Rate Bond	19.7500%

The continuous fall in the yields on the government’s short-term securities has no end in sight as the trend repeated this week despite a climb in the recent inflation reading. Treasury yields are virtually becoming independent of inflationary figures as strong demand continue to send yields lower.

The yield on the 91-day bill declined by 1 basis point (bps) this week to build on last week’s 2 bps. It dipped to 12.5582% this week from 12.5637% registered last week.

The 182-day failed to end nine weeks of consecutive declining performances as it lost by 1 bps this week. It declined from 13.3676% recorded last week to 13.3590% this week.

Week-on-Week Changes

Term	Previous	Current	Change	Percentage Change	Year-to-Date
91 – Day	12.5637%	12.5582%	-0.01	-0.04%	-10.91%
182 – Day	13.3676%	13.3590%	-0.01	-0.06%	-5.59%
10 – Year	17.5000%	19.7500%	2.25	12.86%

Auction results from Bank of Ghana (BoG) tender 1755 revealed a weaker demand for the government’s short-term assets as investors focused on a much longer security with high yielding potential.

A total of GHC 896.67 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 1,281.00 million. The government was subsequently forced to accept all bids tendered.

The government also issued a 10-year paper this week, seeking to raise a total of GHC 1,800.00 million from the domestic market. The long-term paper was hugely undersubscribed by 54% as GHC 820.59 million worth of bids were tendered and accepted by the government. The yield on the 10-year paper climbed up by 225 bps from 17.5000% in June, 2018 to 19.7500%.

Next week, the government will be seeking to raise a total of GHC 1,019.00 million from 91-day, 182-day, and 364-day bills.