Treasury Rates [March 28, 2022]

Security	Interest Rates
91 – Day Bill	14.1435%
182 – Day Bill	14.5125%
364 – Day Bill	17.1051%

Following the recent hike in the monetary policy rate by 250 basis points (bps) to 17.0%, short-term Government of Ghana Treasury bills rates responded to the signal of a general rise in interest with an impressive jump as the 91, 182, and 364 tenors recorded significant gains from previous week’s levels. Confronted with significant upside risks to inflation, the central bank tightened the policy rate as it moved to tame the sharp rise in consumer prices whilst attempting to rein in foreign investments which in recent times has suffered a shock on the back of key risks facing the local economy.

The 91-day bill soared by 73 bps this week to send its total accumulated gains in 2022 to 1.6 percentage points. It rose from 13.4152% registered last week to 14.1435% this week, its highest in nearly two years.

The 182-day bill was the star performer for the week as it climbed up by 90 bps to build on previous week’s gains. It soared to 14.5125% this week, up from 13.6095% posted last week.

The 364-day bill, after a sluggish performance over the past weeks, picked up momentum as it strengthened by 15 bps. It broke through the 17.0% level for the very first time since March 2020. It cleared at 17.1051% this week from 16.9564% recorded last week.

Week-on-Week Changes

Term	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	13.4152%	14.1435%	0.73	5.43%	12.92%
182 – Day	13.6095%	14.5125%	0.90	6.64%	9.85%
364 – Day	16.9564%	17.1051%	0.15	0.88%	2.77%

Auction results from the Bank of Ghana (BoG) tender 1791 revealed that after several weeks of strong demand for the Government’s bills, investors this week sat on the fence as they assessed the impact of the government’s policies aimed at reducing the level of hardship in the economy and measures to restore confidence in the Ghanaian economy.

A total of GHS 733.21 million worth of bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHS 2,210.00 million. The government accepted all GHS 72.65 million worth of bids tendered for the 182-day bill and GHS 434.69 million and GHS 220.37 million worth of bids tendered for the 91-day and 364-day bills respectively.

In the week ahead, we expect the government to raise a total of GHS 766.00 million from 91-day, 182-day, and 364-day bills.