Treasury Rates for February 7, 2022

Security	Interest Rates
91 – Day Bill	12.6645%
182 – Day Bill	13.2349%

After the central bank kept the policy rate unchanged at 14.5% at its first sitting in 2022 on fears of the persistence of inflationary pressures, short-term Government of Ghana Treasury bills rates continued its recovery adding onto previous week’s gains. The Bank of Ghana noted with concern that the latest inflation forecasts showed that the inflation rate is likely to remain above its targets in the near term. We, therefore, expect the yields on short-term Treasury papers to continue to post marginal increases.

After registering an impressive 9 basis points (bp) gain last week, the 91-day bill this week rose to add an additional 3 bp gain. It climbed up from 12.6335% posted last week to 12.6645% this week, its highest in more than six months.

The 182-day bill recorded its fourth consecutive gain this week as it strengthened by 1 bp this week. It cleared at 13.2349% this week from 13.2270% recorded last week.

Week-on-Week Changes

Term	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	12.6335%	12.6645%	0.03	0.25%	1.11%
182 – Day	13.2270%	13.2349%	0.01	0.06%	0.18%

Auction results from the Bank of Ghana (BoG) tender 1784 indicated strong demand for the government’s short-term papers as investors remain hopeful of improved returns.

A total of GHS 1,303.05 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHS 932.00 million. The government accepted all bids tendered.

In the week ahead, we expect the government to raise a total of GHS 1,407.00 million from 91-day, 182-day and 364-day bills. Later in the month, we also expect the government to return to the domestic market to raise a total of GHS 1,400.00 million and GHS 1,200.00 million from 2-year and 7-year papers respectively.