Treasury Rates [April 18, 2022]

Security	Interest Rates
91 – Day Bill	16.3287%
182 – Day Bill	16.3155%
364 – Day Bill	18.8513%

Short-term Government of Ghana (GoG) Treasury bills rates continued their run this week after the latest consumer prices data put the year-on-year inflation in March at 19.4%, the highest in more than 9 years. This is in line with expectations as consumer prices continue to be swayed by hikes in fuel and transport costs amid a sharp decline in the value of the local currency. We foresee investors further bidding higher yields in subsequent issuances to make up for the erosion in their purchasing power.

After an impressive 90 basis points (bps) climb last week, the yield on the 91-day bill inched up further by 59 bps this week as it sustained another striking breakthrough, advancing past the 16.00% level for the very first time since April 2017. It cleared at 16.3287% this week, up from 15.7406% recorded last week.

The 182-day bill extended its weekly gains for the fourteenth consecutive time this week as it added 39 bps to send its accumulated gains in 2022 to 3.12 percentage points. It rose from 15.9264% registered last week to 16.3155% this week, its highest in more than five years.

The 364-day bill soared by 58 bps to build on last week’s 1.17 percentage points gain. It moved up from 18.2737% posted last week to 18.8513% this week.

Week-on-Week Changes

Term	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	15.7406%	16.3287%	0.59	3.74%	30.36%
182 – Day	15.9264%	16.3155%	0.39	2.44%	23.50%
364 – Day	18.2737%	18.8513%	0.58	3.16%	13.26%

Auction results from the Bank of Ghana (BoG) tender 1794 showed that for the fourth time in a row, the government failed to meet its targets despite the strong pick-up in rates.

A total of GHS 787.59 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 1,004.00 million. The government accepted all bids tendered for the 182-day bill but accepted GHS 711.51 million and GHS 14.09 million from a total of GHS 721.51 million and GHS 15.09 million worth of bids for the 91-day and 364-day bills.

In the week ahead, we expect the government to raise a total of GHS 1,932.00 million from 91, 182, and 364 tenors. Securities ranging from 2-year up to 6-year are tabled to be issued in the second quarter of the year.