Treasury Rates for August 9th, 2021

Security	Interest Rates
91 – Day Bill	12.5215%
182 – Day Bill	13.3064%
364 – Day Bill	16.2880%

Ahead of the announcement of July’s consumer prices information, short-term Government of Ghana Treasury bills rates stayed on their downturn performance despite the persistence of upward price pressures on consumer goods. After the inflation rate climbed by 30 basis points (bps) in June to 7.8%, the inflation rate for July will be expected to hover around June’s figures on the back of price hikes in commodities coupled with the marginal depreciation of the local currency.

The yield on the 91-day bill lost by 3 bps this week as it added to last week’s 1 bps loss. It weakened from 12.5484% registered last week to 12.5215% this week.

The 182-day bill failed to extend two weeks of gains as it plunged by 6 bps this week to erase last week’s gain. It fell to 13.3064% this week from 13.3708% posted last week.

The 364-day bill lost traction as it failed to hold onto its last issuance’s 8 bps gain. It plummeted by 11 bps this week to 16.2880% from 16.3983 posted at its last issuance.

Week-on-Week Changes

Term	Previous	Current	Change	Percentage Change	Year-to-Date
91 – Day	12.5484%	12.5215%	-0.03	-0.21%	-11.17%
182 – Day	13.3708%	13.3064%	-0.06	-0.48%	-5.96%
364 – Day	16.3983%	16.2880%	-0.11	-0.67%	-3.98%

Auction results from Bank of Ghana (BoG) tender 1758 showed that demand for the government’s assets came in excess of expectations as investors continue to stay on cautious paths.

A total of GHC 1,654.96 million worth of bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHC 1,101.00 million. The government subsequently accepted 77.7% of the total worth of bids tendered allowing it to borrow at a relatively cheaper cost.

Next week, the government will be seeking to raise a total of GHC 1,161.00 million from 91-day, 182-day, and 364-day bills.