Treasury Rates for January 17, 2022

Security	Interest Rates
91 – Day Bill	12.5213%
182 – Day Bill	13.2091%

The recent climb in the latest inflation reading had little bearing on the Government’s short-term Treasury assets as the yields on the 91-day and the 182-day bills were little changed from last year’s closing figures. Increased economic activities in the last month of 2021 saw inflation jump for the sixth consecutive time to 12.6%, the highest since May, 2017. This phenomenon has had little effect on the short-end of the Treasury yield curve as the yields struggle to pick up in consonance with the 5.1 percentage point surge in the inflation readings between May and December.

The 91-day bill was little changed this week as it declined marginally to add onto last week’s tiny dip. It fell to 12.5213% this week, from 12.5249% printed last week.

The yield on the 182-day bill gained 1 basis point (bp) to recover from last week’s 1 bp dip. It rose from 13.1980% cleared last week to 13.2091% this week.

Week-on-Week Changes

Term	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	12.5249%	12.5213%	0.00	-0.03%	-0.03%
182 – Day	13.1980%	13.2091%	0.01	0.08%	-0.02%

Auction results from the Bank of Ghana (BoG) tender 1781 showed that demand came in slightly higher than the government’s target amount as investment activities gradually picks up momentum after the yuletide.

A total of GHC 1,065.41 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 1,051.00 million. The government accepted all bids tendered.

In the week ahead, the government will be seeking to raise a total of GHC 1,356.00 million from 91-day, 182-day, and 364-day bills. Government has also re-opened bids for a Tap issue of a 3-year bond, as well as seeks to issue a 6-year bond.