Treasury Rates for November 22, 2021

Security	Interest Rates
91 – Day Bill	12.4961%
182 – Day Bill	13.1872%

After weeks of registering gains on the back of expectations of higher inflation, short-term Treasury bills rates posted a mixed performance this week with the 182-day bill sustaining its first decline in three weeks. The increasing inflationary trend over the past five months has slowed down the fast pace of decline in Treasury yields as investors continue to cut back their interest in short-term government securities. Treasury rates in the remaining weeks of the year are expected to remain steady as investors move to increase their consumption expenditures.

The 91-day bill extended its week-on-week gains for the third consecutive time as it rose to its highest in more than 3 weeks. It gained by 1 basis point (bps) to clear at 12.4961% this week from 12.4836% recorded last week.

The 182-day bill after compounding 9 bps gain over the past two weeks, lost traction this week as it declined by 3 bps to clear at 13.1872% this week from 13.2163% posted last week.

Week-on-Week Changes

Term	Previous	Current	w-o-w Change	Percentage Change	Year-to-Date
91 – Day	12.4836%	12.4961%	0.01	0.10%	-11.35%
182 – Day	13.2163%	13.1872%	-0.03	-0.22%	-6.80%

Auction results from Bank of Ghana (BoG) tender 1773 showed a sluggish demand for the government’s short-term assets as investors began to allocate more resources into consumption.

A total of GHC 655.73 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 708.00 million. The government subsequently accepted all bids tendered.

Next week, the government will be seeking to raise a total of GHC 1,390.00 million from 91-day, 182-day, and 364-day bills.