Treasury Rates for October 11, 2021

Security	Interest Rates
91 – Day Bill	12.4742%
182 – Day Bill	13.1518%

This week, short-term Government of Ghana Treasury bills rates posted a mixed performance ahead of the announcement of the rate of inflation for September where it is expected that the prevalence of upward price pressures will keep the inflation rate close to the upper bound of the inflation target band. The inflation rate rose for the third consecutive time in August to top 9.7% as food, transport, and housing drove consumer prices upward.

The 91-day was little changed this week as it climbed marginally to 12.4742% from 12.4732% posted last week.

The yield on the 182-day failed to recoup from last week’s 4 basis points (bps) loss. It slowed further by 3 bps to 13.1518% this week from 13.1769% recorded last week.

Week-on-Week Changes

Term	Previous	Current	Change	Percentage Change	Year-to-Date
91 – Day	12.4732%	12.4742%	0.00%	0.01%	-11.50%
182 – Day	13.1769%	13.1518%	-0.03%	-0.19%	-7.05%

Auction results from Bank of Ghana (BoG) tender 1767 revealed that Treasury assets this week was undersubscribed by 33% as investors continued to remain wary of the widening disparity between inflation figures and the yields on Treasury securities.

A total of GHC 993.39 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 1,475.00 million. The government subsequently accepted all bids tendered.

Next week, the government will be seeking to raise a total of GHC 969.00 million from 91-day, 182-day, and 364-day bills.