Treasury Rates for August 2nd, 2021

Security	Interest Rates
91 – Day Bill	12.5484%
182 – Day Bill	13.3708%
2 – Year Note	17.2500%

After short-term Treasury securities recorded brief gains last week, Treasury bill rates were mixed this week as the 91-day bill resumed its downward streak whilst the 182-day built on previous week’s tiny gain. This comes after the Finance Minister presented the mid-year budget review to Ghana’s parliament and indicated that the government was glued to its fiscal plans for the year without any change in fiscal policy direction.

The 91-day bill lost 1 basis point (bps) this week to decline to 12.5484% this week from 12.5625% posted last week.

The 182-day bill maintained its traction as it built on last week’s gains, its first week-on-week gain so far in 2021. It rose marginally from 13.3634% registered last week to 13.3708% this week.

Week-on-Week Changes

Term	Previous	Current	Change	Percentage Change	Year-to-Date
91 – Day	12.5625%	12.5484%	-0.01	-0.11%	-10.98%
182 – Day	13.3634%	13.3708%	0.01	0.06%	-5.50%
2 – Year	17.6000%	17.2500%	-0.35	-1.99%	-6.76%

Auction results from Bank of Ghana (BoG) tender 1757 showed that demand for government assets remained strong this week on high inflation expectations.

A total of GHC 686.46 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 630.00 million. Whilst the government accepted all bids tendered for the 182-day, only GHC 267.32 million worth of bids out of GHC 475.08 million worth of bids were accepted for the 91-day bill.

The government, as per its issuance calendar, issued a 2-year fixed-rate note intending to raise GHC 1,200.00 million from the domestic market at a rate of 16.9000%. However, the rate was revised upwards to 17.2500% representing a 35 bps decline from its last issuance in February, 2021. The revised rate subsequently attracted investors as a total of GHC 1,530.21 worth of bids were tendered and accepted, beating the government’s target.

Next week, the government will be seeking to raise a total of GHC 1,101.00 million from 91-day, 182-day, and 364-day bills.