Treasury Rates [September 12, 2022]

Security	Interest Rates
91 – Day Bill	29.4838%
182 – Day Bill	31.0530%

Ahead of the release of inflation numbers for August, short-term Government of Ghana Treasury bill rates stayed on their upward trajectory, building on last week’s gains as the government continue to remain quiet on long-term issuances. Inflation in August will be expected to trend above 30.0% following the prevalence of upward price pressures on consumer goods and services exacerbated by increases in ex-pump fuel prices and a pressured Cedi, among others. We expect investors to continue to bid higher yields for the government’s assets as consumers’ purchasing power erodes.

The 91-day bill inched up by 44 basis points (bps) this week from last week’s level with a gain of 43 bps. The yield on the 91-day bill cleared at 29.4838% this week, up from 29.0452% recorded last week.

The yield on the 182-day bill came in with a stronger gain this week compared to last week’s 29 bps climb. It rose by 83 bps to clear at 31.0530% this week from 30.2272% posted last week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	29.0452%	29.4838%	0.44	1.51%	135.39%
182 – Day	30.2272%	31.0530%	0.83	2.73%	135.05%

Auction results of tender 1815 showed that after last week’s sluggish performance where the target amount was oversubscribed by 3.1%, demand rose sharply this week to register a 36.1% oversubscription rate.

A total of GHS 2,288.91 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of GHS 1,682.00 million. The government accepted GHS 1,410.75 million and GHS 815.70 million worth of bids tendered for its 91-day and 182-day bills respectively.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 1,717.00 million from 91-day, 182-day, and 364-day bills.