Security | Interest Rates |
91 – Day Bill | 24.6805% |
182 – Day Bill | 25.9834% |
Short-term Government of Ghana Treasury rates continued their upward trajectory this week adding to previous weeks’ gains on course to be at par with the prevailing inflation rate which currently stands at 27.6%, the highest in more than 15 years. Treasury yields are further expected to climb up in the short-term on the back of expectations of higher inflationary numbers as key underlying risks to the inflation outlook persist.
The 91-day bill rose by 98 basis points (bps), its twenty-second consecutive weekly gain in 2022. It cleared at 24.6805% this week, up from 23.6991% posted last week.
The yield on the 182-day bill posted a moderate gain this week after weeks of recording strong gains. It was up by 58 bps to clear at 25.9834% this week from 25.4083% registered last week.
Week-on-Week Changes
Tenor | Previous | Current | w-o-w Change | w-o-w % Change | Year-to-Date |
91 – Day | 23.6991% | 24.6805% | 0.98 | 4.14% | 97.04% |
182 – Day | 25.4083% | 25.9834% | 0.58 | 2.26% | 96.67% |
Auction results of tender 1803 revealed that after last week’s marginal miss, demand for the government’s short-term papers rose sharply to beat the target amount as rates pick up steadily.
A total of GHS 1,543.85 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of GHS 1,325.00 million. The government accepted GHS 1,293.42 million and GHS 211.12 million worth of bids out of GHS 1,311.89 million and GHS 231.96 million bids tendered for the 91-day and 182-day bills respectively.
For the last week in the second quarter of the year, we expect the government to raise a total of GHS 1,311.00 million from 91-day, 182-day, and 364-day bills.