Treasury Rates for September 13, 2021

Security	Interest Rates
91 – Day Bill	12.4510%
182 – Day Bill	13.2120%
6 – Year Fixed Rate Bond	18.8000%

Short-term Government of Ghana Treasury bills rates registered an uptick in line with the recent climb in August’s inflation reading as the inflation rate rose for the third consecutive time to a five-month high. The persistent upward price pressures emanating from increases in petroleum products, Cedi depreciation and fiscal slippages have failed to lift up Treasury rates as investors continue to take solace in government assets.

The 91-day bill was little changed this week as it rose marginally from 12.4499% last week to 12.4510% this week.

The yield on the 182-day bill gained 2 basis points (bps) this week to recover part of last week’s 3 bps decline. It rose to 13.2120% this week from 13.1952% recorded last week.

Week-on-Week Changes

Term	Previous	Current	Change	Percentage Change	Year-to-Date
91 – Day	12.4499%	12.4510%	0.00	0.01%	-11.67%
182 – Day	13.1952%	13.2120%	0.02	0.13%	-6.63%
6 – Year	19.2500%	18.8000%	-0.45	-2.34%	-2.34%

Auction results from Bank of Ghana (BoG) tender 1763 revealed that demand failed to beat the government’s target amount as investors thronged to a longer-dated paper with higher returns.

A total of GHC 1,258.89 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 1,380.00 million. The government subsequently accepted all bids tendered.

The government as part of its issuance calendar also issued a 6-year fixed-rate bond in which it sought to raise GHC 1,000.00 million from the domestic market. The long-term paper was largely oversubscribed as demand came in at GHC 1,244.07 million. In line with the downward trend in general interest rates, the yield on the 6-year paper declined from 19.2500% in January to 18.8000%.

Next week, the government will be seeking to raise a total of GHC 1,474.00 million from 91-day, 182-day, and 364-day bills.