Treasury Rates for October 18, 2021

Security	Interest Rates
91 – Day Bill	12.4469%
182 – Day Bill	13.1437%
364 – Day Bill	16.2660%
3 – Year Fixed Rate Bond	19.0000%

The yields on the government’s short-term assets were mixed this week after the latest inflation figure showed that the inflation rate closed the third quarter climbing above the central bank’s medium-term inflation target band. The inflation rate for September was reported at 10.6%, up from 9.7% as housing & utilities and transport continued to mount upward pressures on consumer goods and services.

The 91-day bill failed to sustain its marginal gain recorded last week as it declined by 3 basis points (bps) this week. It dipped to 12.4469% this week from 12.4742% posted last week.

The yield on the 182-day bill lost by 1 bps this week to build on last week’s 3 bps decline. It fell from 13.1518% registered last week to 13.1437% this week, its lowest since August, 2017.

The 364-day bill rose for the second consecutive time this week in line with the uptick in recent inflation readings. It strengthened by 5 bps from 16.2131% at its last issuance date to 16.2660%, its highest in more than 10 weeks.

Week-on-Week Changes

Term	Previous	Current	Change	Percentage Change	Year-to-Date
91 – Day	12.4742%	12.4469%	-0.03	-0.22%	-11.70%
182 – Day	13.1518%	13.1437%	-0.01	-0.06%	-7.11%
364 – Day	16.2131%	16.2660%	0.05	0.33%	-4.11%
3 – Year	17.7000%	19.0000%	1.30	7.34%	7.34%

Auction results from Bank of Ghana (BoG) tender 1768 revealed that after several weeks of sluggish demand for the government’s lower-end Treasury securities, demand picked up this week to beat the target amount on the back of expectations of higher inflation rate.

A total of GHC 1,003.25 million worth of bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHC 969.00 million. The government accepted all bids tendered.

A 3-year fixed-rate bond was also issued this week as part of the government’s issuance calendar for the year in which the government sought to raise GHC 1,300.00 million from the domestic market. Lesser than anticipated demand forced the yield on the medium-term paper upwards from initial price guidance of 18.50% to finally clear at 19.00%.

Next week, the government will be seeking to raise a total of GHC 1,083.00 million from 91-day and 182-day bills.