Treasury Rates [September 26, 2022]

Security	Interest Rates
91 – Day Bill	30.1800%
182 – Day Bill	31.3414%

Short-term Government of Ghana Treasury bills rates were up this week, building on the previous week’s gains as the Monetary Policy Committee of the Bank of Ghana reschedules its September sitting to coincide with the end of the International Monetary Fund (IMF) mission to allow the decision on the policy rate to benefit from the broader discussions to be held during the period. An IMF staff team is expected to continue discussions with the government this week on policies and reforms that could be supported by the Fund after the government expressed an interest in an IMF balance of payment bailout.

The yield on the 91-day bill posted a moderate gain of 27 basis points (bps) compared to last week’s 42 bps jump. It cleared at 30.1800% this week, up from 29.9067% recorded last week.

After recording a marginal increase last week, the yield on the 182-day bill edged up higher this week with a higher margin, coming in with a jump of 20 bps. It moved up from 31.1441% posted last week to clear at 31.3414% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	29.9067%	30.1800%	0.27	0.91%	140.95%
182 – Day	31.1441%	31.3414%	0.20	0.63%	137.23%

Auction results of tender 1817 revealed that after weeks of oversubscriptions for the government’s short-term assets, demand failed to match the government’s target amount for the first time in fifteen weeks as investors begin to show signs of worry after Fitch’s downgrade of Ghana’s credit ratings. The target amount was undersubscribed by a little over 10%.

A total of GHS 1,192.42 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of GHS 1,331.00 million. The government accepted all GHS 244.28 million worth of bids tendered for the 182-day paper and accepted GHS 948.02 million worth of bids for the 91-day paper.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 905.00 million from 91-day, 182-day, and 364-day bills.