Treasury Rates for December 20, 2021

Security	Interest Rates
91 – Day Bill	12.5068%
182 – Day Bill	13.2041%
364 – Day Bill	16.5652%
5 – Year Fixed Rate Bond	21.0000%

A significant jump in the recent inflation reading mounted upward pressures on short-term Government of Ghana Treasury bills rates this week as the government moved to mop up excess liquidity to wrap up its expenditures for the remainder of the year. The inflation rate in November printed at 12.2%, the highest since September 2017 buoyed by rising energy costs, Cedi depreciation, and amongst others. A steady rise in inflation figures over the past six months has forced the central bank to revise its policy directions, with general interest rates said to be reversing its course.

The yield on the 91-day bill registered a 4 basis point (bps) gain this week to recover the losses sustained over the past two weeks. It cleared at 12.5068% this week from 12.4718% recorded last week.

The 182-day bill added a 1 bps gain to its 3 bps gains recorded last week. It rose from 13.1940% posted last week to 13.2041% this week.

The 364-day bill extended its positive run as it climbed up by 2 bps this week to round up its accumulated gains over the past two months to 32 bps. It surged from 16.3610% posted last week to 16.5652% this week, its highest since March 2021.

Week-on-Week Changes

Term	Previous	Current	w-o-w Change	w-o-w % change	Year-to-Date
91 – Day	12.4718%	12.5068%	0.04	0.28%	-11.27%
182 – Day	13.1940%	13.2041%	0.01	0.08%	-6.68%
364 – Day	16.3610%	16.5652%	0.20	1.25%	-2.35%
5 – Year	18.8000%	21.0000%	2.20	11.70%	14.75%

Auction results from the Bank of Ghana (BoG) tender 1777 showed that the government narrowly missed its target for the short-term papers as investors thronged to the 5-year paper offering a better reward.

A total of GHC 1,145.74 million worth of bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHC 1,146.00 million. The government accepted all bids tendered.

The 5-year medium-term paper was the star of the week after it recorded a massive jump from 18.8000% at its last issuance date in May to 21.0000%, with a year-to-date gain of 14.75%. A total of GHC 923.80 million worth of bids were tendered and subsequently accepted by the government.

Next week, the government will be seeking to raise a total of GHC 830.00 million from 91-day and 182-day bills.