Treasury Rates [July 4, 2022]

Security	Interest Rates
91 – Day Bill	25.8822%
182 – Day Bill	26.5718%

Short-term Government of Ghana bills cleared higher this week from last week’s level as expectations of higher inflation continue to drive Treasury yields upwards. This week’s Treasury performance comes as the nation heads to the International Monetary Fund (IMF) for a bailout. A release from the government noted that the move is to “provide a balance of payment support as part of a broader effort to quicken Ghana’s build back in the face of challenges induced by COVID-19 pandemic, and recently the Russia-Ukraine crisis.”

The 91-day bill posted a moderate gain this week after recording a 3.88% jump last week. This week, it climbed by 0.95% to clear at 25.8822% from 25.6383% registered last week.

The 182-day bill was much calmer this week as the drastic pace of increase in Treasury yields slows. It gained 17 basis points to move from 26.4008% last week to clear at 26.5718% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	25.6383%	25.8822%	0.24	0.95%	106.63%
182 – Day	26.4008%	26.5718%	0.17	0.65%	101.13%

Auction results of tender 1805 showed that for the second time running, demand for the government’s short-term paper shot up to beat the target amount as yields gradually catches up with the prevailing inflation rate.

A total of GHS 926.51 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of GHS 529.00 million. The government, however, could only accept GHS 827.53 million of the total bids submitted.

In the week ahead, we expect the government to raise a total of GHS 928.00 million from 91-day, 182-day, and 364-day bills.