Treasury Rates [March 7, 2022]

Security	Interest Rates
91 – Day Bill	13.1419%
182 – Day Bill	13.3680%
364 – Day Bill	16.9557%

Driven by expectations of higher inflation figures, the yields on the 91-day and 182-day bills extended their upward trajectory adding onto its gains registered in the previous weeks. This week’s Treasury bills performance comes ahead of the announcement of February‘s consumer prices information where it is expected that the inflation rate will further firm in the double digits mainly on the back of the fast deterioration in the value of the local currency and the continuous rise in the prices of petroleum products.

After breaking through the 13.0000% level for the first time since March last year, the yield on the 91-day bill continued its run as it rose by 12 basis points (BP) this week. It cleared at 13.1419% this week, up from 13.0269% registered last week.

The 182-day bill rose for the eighth consecutive time this week as it added 6 BP to last week’s 1 BP gain. It hardened to 13.3680% this week from 13.3085% recorded last week.

The 364-day bill slowed for the second consecutive time this week as it fell marginally to build on last week’s 3 BP loss. It declined to 16.9557% this week from 16.9567% posted last week.

Week-on-Week Changes

Term	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	13.0269%	13.1419%	0.12	0.88%	4.92%
182 – Day	13.3085%	13.3680%	0.06	0.45%	1.19%
364 – Day	16.9567%	16.9557%	0.00	-0.01%	1.87%

Auction results from the Bank of Ghana (BoG) tender 1788 revealed that after last week’s disappointing performance, demand rose steadily this week to beat the government’s target amount by a little over 4%.

A total of GHS 1,229.47 million worth of bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHS 1,175.00 million. The government accepted all bids tendered.

In the week ahead, we expect the government to raise a total of GHS 1,402.00 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 1,000.00 million and GHS 800 million from 5-year and 10-year papers respectively.