Treasury Rates for May 30, 2022

Security	Interest Rates
91 – Day Bill	19.9389%
182 – Day Bill	22.9499%
364 – Day Bill	24.4638%

Short-term Government of Ghana Treasury bills rates cleared higher from previous levels after the monetary policy committee of the Bank of Ghana handed down a 200 basis points hike in the policy rate citing the need to decisively address the current inflationary pressures to re-anchor expectations and help foster macroeconomic stability. This is the second time in 2022 that the policy rate has been reviewed upward following the persistent and sustained rise in the consumer price index.

The 91-day bill inched up by 86 bps this week to add to last week’s 85 bps jump. It cleared at 19.9389% this week, up from 19.0807% registered last week.

After last week’s impressive 150 bps jump, the 182-day came in stronger again with a 219 bps jump from last week’s levels. It rose from 20.7640% posted last week to clear at 22.9499% this week.

The 364-day bill came in as the star performer for the week, inching up by 274 bps to send its total accumulated gains in 2022 to 785 bps. It soared from 21.7276% posted last week to 24.4638% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	19.0807%	19.9389%	0.86	4.50%	59.19%
182 – Day	20.7640%	22.9499%	2.19	10.53%	73.71%
364 – Day	21.7276%	24.4638%	2.74	12.59%	46.98%

Auction results of tender 1800 revealed that the government narrowly missed its intended target amount after weeks of sluggish demand. Investor sentiments seem to be picking up as yields gradually inches closely towards the prevailing inflation rate.

A total of GHS 1,124.50 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 1,282.00 million. The government accepted all bids tendered for the 91-day bill and accepted GHS 145.49 million and GHS 101.51 million out of GHS 150.54 million and GHS 129.33 million worth of bids tendered for the 182-day and the 364-day bills.

In the week ahead, we expect the government to raise a total of GHS 1,228.00 million from 91-day and 182-day bills. Securities ranging from 2-year up to 6-year are tabled to be issued in the second quarter.