Treasury Rates [June 27, 2022]

Security	Interest Rates
91 – Day Bill	25.6383%
182 – Day Bill	26.4008%
364 – Day Bill	27.4271%

The persistent and sustained rise in short-term Treasury bills continued this week as the 91-day bill cleared at a level twice its 2022 year-open level whilst the 182-day bill came in with a year-to-date (YTD) gain of 99.83%. Treasury yields have been a strong rise over the past 1 year after inflation rose from a low of 7.5% in May 2021 to a high of 27.6% in May this year following a consistent rise in the cost of petroleum products and transport fares amongst others.

The 91-day bill rose by 96 basis points (bps) this week after posting a similar performance last week to send its YTD performance to +104.69%. It cleared at 25.6383% this week from 24.6805% recorded last week.

The 182-day bill added a 42 bps gain to its previous week’s 58 bps gain as it extended its weekly gains for six months running. It moved up from 25.9834% posted last week to 26.4008% this week.

The yield on the 364-day bill ended the second half of the year with a YTD gain of 64.79% as it continued its pursuit after the inflation rate. It cleared at 27.4271% this week, up from 26.8626% 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	24.6805%	25.6383%	0.96	3.88%	104.69%
182 – Day	25.9834%	26.4008%	0.42	1.61%	99.83%
364 – Day	26.8626%	27.4271%	0.56	2.10%	64.79%

Auction results of tender 1804 revealed that investors remained optimistic about the government’s short-term papers as yields climb up steadily. Demand this week rose to beat the government’s target amount after a similar performance last week.

A total of GHS 1,593.99 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 1,311.00 million. The government in a bid to reduce its interest burden accepted GHS 1,441.07 million worth of the bids tendered for the 3 tenors.

In the week ahead, we expect the government to raise a total of GHS 529.00 million from 91-day and 182-day bills.