Treasury Rates [February 21, 2022]

Security	Interest Rates
91 – Day Bill	13.0269%
182 – Day Bill	13.3085%
364 – Day Bill	16.9567%

Short-term Government of Ghana Treasury rates came in mixed this week as the 91-day and 182-day bills cleared higher whilst the yield on the 364-day recorded its weekly loss in 2022. Treasury yields have been on an upward trajectory in the first 2 months of the year buoyed by rising inflation. We expect the yields on the government’s short to medium-term papers to continue to persist upwards as price pressures continue to linger fueled by the recent adjustment in transport costs.

The yield on the 91-day bill broke through the 13.0000% level for the first time since early March 2021 as investors express strong interest in shorter-dated government assets. The 91-day added 11 basis points (BP) gain to previous weeks’ gains as it rose to 13.0269% this week, up from 12.9145% recorded last week.

The 182-day bill rose marginally by 1 BP to build on last week’s 4 BP gain. It climbed to 13.3085% this week from 13.2945% posted last week.

The yield on the 364-day bill cooled off this week as it lost 3 BP to trim down its year-to-date gain from 2.06% to 1.88%. It cleared at 16.9567% this week from 16.9873% recorded last week.

Week-on-Week Changes

Term	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	12.9145%	13.0269%	0.11	0.87%	4.00%
182 – Day	13.2945%	13.3085%	0.01	0.11%	0.73%
364 – Day	16.9873%	16.9567%	-0.03	-0.18%	1.88%

Auction results from the Bank of Ghana (BoG) tender 1787 revealed that the growing strong demand for government Treasury securities slowed down this week after weeks of oversubscriptions.

A total of GHS 1,212.80 million worth of bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHS 1,324.00 million. The government accepted all bids tendered.

In the week ahead, we expect the government to raise a total of GHS 1,175.00 million from 91-day, 182-day, and 364-day bills. In March, we also expect the government to return to the domestic market to raise a total of GHS 1,000.00 million and GHS 800 million from 5-year and 10-year papers respectively.