Treasury Rates [August 22, 2022]

Security	Interest Rates
91 – Day Bill	27.7213%
182 – Day Bill	29.2915%

Following an emergency Monetary Policy Committee (MPC) meeting last week that saw the central bank resume its policy tightening stance after it took a wait-and-see posture at its July meeting, Treasury bills rates registered an uptick in consonance with the historic hike in the benchmark rate. The MPC handed down its biggest rate hike in the history of the monetary policy rate last week after inflation in July rose to a nearly 20-year high at 31.7% whilst the economy continues to remain vulnerable to upward inflationary pressures. This development will be expected to continue to push rates up albeit at a much slower pace.

The 91-day bill was up by 38 basis-point (bp) this week, its thirtieth consecutive weekly gain in 2022. It moved up to 27.7213% this week from 27.3416% recorded last week.

The margin of increase in the 182-day bill came in stronger this week with a 56 bp gain after weeks of modest gains. It cleared at 29.2915% this week, up from 28.7341% cleared last week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	27.3416%	27.7213%	0.38	1.39%	121.32%
182 – Day	28.7341%	29.2915%	0.56	1.94%	121.71%

Auction results of tender 1812 showed a strong expression of interest in short-dated government securities by investors as demand came in excess of the target amount for the ninth consecutive time. Tender results showed that this week’s Treasury auction was oversubscribed by nearly 35%.

A total of GHS 1,097.20 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of GHS 823.00 million. The government subsequently accepted all bids tendered.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 1,167.00 million from 91-day, 182-day, and 364-day bills.