Treasury Rates [June 13, 2022]

Security	Interest Rates
91 – Day Bill	23.6991%
182 – Day Bill	25.4083%
364 – Day Bill	26.8626%

Short-term Treasury yields rose this week from the previous issuance’s level in line with the 400 basis points (bps) jump in May’s inflation reading. Inflation printed at 27.6% in May, up from 23.6% in April as hikes in the prices of imported items and upward adjustments in fuel cost drove the consumer price index to a multi-year high. We expect Treasury yields to continue to climb up in the near term as inflation steadily surges.

The yield on the 91-day bill posted a moderate gain this week after it posted an impressive 264 bps jump last week. It climbed up by 112 bps this week to 23.6991%, from 22.5743% posted last week.

The 182-day bill climbed up by 100 bps to build on last week’s 146 bps gain. It cleared at 25.4083% this week from last week’s level at 24.4105%.

The 364-day bill gained 240 bps this week to clear at 26.8626%, up from 24.4638% registered at its last issuance date.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	22.5743%	23.6991%	1.12	4.98%	89.21%
182 – Day	24.4105%	25.4083%	1.00	4.09%	92.32%
364 – Day	24.4638%	26.8626%	2.40	9.81%	61.40%

Auction results of tender 1802 showed that despite the strong pick-up in investor interests for government assets, demand failed to meet the government’s target amount this week.

A total of GHS 1,199.20 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 1,412.00 million. The government, however, could only accept GHS 1,102.72 million of the total bids submitted.

In the week ahead, we expect the government to raise a total of GHS 1,325.00 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.