Treasury Rates for August 23, 2021

Security	Interest Rates
91 – Day Bill	12.4232%
182 – Day Bill	13.2075%

Short-term Treasury yields took a downturn this week, adding onto previous weeks’ sluggish performances as the stock market boom continues to offer high returns to investors. Treasury yields have remained subdued in most parts of 2021 despite the persistence of upward price pressures on consumer goods and services. The local bourse has as of August 20, recorded a little over 41% gains (ytd).

The 91-day bill has failed to post any gains after recording a marginal gain late last month. It dipped by 5 basis points (bps) this week to 12.4232% from 12.4701% printed last week.

The yield on the 182-day bill similarly tumbled by 5 bps this week to build on last week’s 5 bps loss. It weakened from 13.2555% posted last week to 13.2075% this week.

Week-on-Week Changes

Term	Previous	Current	Change	Percentage Change	Year-to-Date
91 – Day	12.4701%	12.4232%	-0.05	-0.38%	-11.87%
182 – Day	13.2555%	13.2075%	-0.05	-0.36%	-6.66%

Auction results from Bank of Ghana (BoG) tender 1760 revealed a strong demand this week as the Treasury bills were 8% oversubscribed. This comes to add onto weeks of impressive demand for the government’s assets, allowing the government to borrow at cheaper cost.

A total of GHC 642.63 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 596.00 million. All bids tendered were subsequently accepted.

Next week, the government will be seeking to raise a total of GHC 1,643.00 million from 91-day and 182-day bills.