Treasury Rates [June 6, 2022]

Security	Interest Rates
91 – Day Bill	22.5743%
182 – Day Bill	24.4105%

Expectations of higher inflationary numbers continue to mount upward pressures on Treasury yields as short-term Government of Ghana bills cleared higher this week from last week’s levels. May’s inflation rate is expected to show how the recent upward adjustment in transport costs coupled with the implementation of the E-Levy has further worsened the already pressured consumer prices.

The 91-day bill inched up by 264 basis points (bps) this week to build on last week’s 86 bps gain. It cleared at 22.5743% this week, up from 19.9389% posted last week.

The yield on the 182-day bill was up by 146 bps this week to send its total accumulated gain yet to 11.23 percentage points with a year-to-date gain of 84.77%. It moved up from 22.9499% last week to clear at 24.4105% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	19.9389%	22.5743%	2.64	13.22%	80.23%
182 – Day	22.9499%	24.4105%	1.46	6.36%	84.77%

Auction results of tender 1801 revealed that after weeks of sluggish demand for the government’s short-term papers, demand rose impressively to beat the target amount as yields drew near to the prevailing inflation figure.

A total of GHS 1,395.65 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of GHS 1,228.00 million. The government accepted all bids tendered for the 91-day bill and accepted GHS 171.01 million out of GHS 172.96 million worth of bids tendered for the 182-day bills.

In the week ahead, we expect the government to raise a total of GHS 1,412.00 million from 91-day, 182-day, and 364-day bills. Securities ranging from 2-year up to 6-year are tabled to be issued in the second quarter.