Treasury Rates for December 6, 2021

Security	Interest Rates
91 – Day Bill	12.4784%
182 – Day Bill	13.1656%
2 – Year Fixed Rate Note	19.7500%

Government of Ghana Treasury bills rates slid this week from their previous levels as sluggish demand for government assets pushed rates downward. The unexpected fall in Treasury yields this week comes after the central bank signaled general rate hikes after it delivered its first monetary policy rate hike in the last six years on the back of rising inflationary trend.

After weeks of posting gains, the 91-day bill failed to maintain its momentum as it tumbled by 2 basis points (bps) this week to its lowest since early November. It cleared at 12.4784% this week from 12.5016% registered last week.

The yield on the 182-day extended its losses this week as it declined by 1 bps to build on last week’s 2 bps drop. It dipped from 13.1685% posted last week to 13.1618% this week.

Week-on-Week Changes

Term	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	12.5016%	12.4784%	-0.02	-0.19%	-11.47%
182 – Day	13.1685%	13.1618%	-0.01	-0.05%	-6.98%
2 – Year	20.0000%	19.7500%	-0.25	-1.25%	6.76%

Auction results from Bank of Ghana (BoG) tender 1775 revealed that demand came in weaker than expected as investors refocus on consumption amid an inflationary environment.

A total of GHC 1,072.52 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 1,284.00 million. The government accepted all bids tendered.

A 2-year fixed-rate note was also issued this week with a target amount of GHC 750.00 million. Investors thronged to the medium-term paper with a comparatively higher rate which cleared at 19.7500%, down from 20.0000% at its last issuance date. The paper was oversubscribed by a little over 124% as yields on the government’s medium to long-term papers picks up steadily.

Next week, the government will be seeking to raise a total of GHC 775.00 million from 91-day, 182-day, and 364-day bills.