Treasury Rates [October 24, 2022]

Security	Interest Rates
91 – Day Bill	32.1554%
182 – Day Bill	33.0785%

Short-term Government of Ghana Treasury yields were up this week on expectations of higher inflation numbers after ex-pump prices saw a 10% to 12% increase amid a slump in the value of the local currency against its major trading partner currencies. This week’s rise in Treasury yields comes after inflation in September rose to its highest in more than 21 years at 37.2%. It is expected that Treasury yields will continue to witness some levels of tightening as monetary and fiscal authorities adopt aggressive policies to curb red-hot inflation numbers.

The 91-day bill posted its biggest weekly increase over the past eight weeks, climbing up by 76 basis points (bps) compared to last week’s 43 bps jump. It cleared at 32.1554% this week, up from 31.3943% posted last week.

The yield on the 182-day bill similarly rose by a higher margin of increase compared to previous weeks, having climbed up by 84 bps compared to last week’s 30 bps jump. It moved up from 32.2360% posted last week to clear at 33.0785% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	31.3943%	32.1554%	0.76	2.42%	156.72%
182 – Day	32.2360%	33.0785%	0.84	2.61%	150.38%

Auction results of tender 1821 showed that demand dwindled this week after a similar performance last week as investors continued to sit on the fence. This week’s Treasury target was undersubscribed by 16.0%, signaling a decline in investor confidence as the local economy continues to face several headwinds.

A total of GHS 1,310.17 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of GHS 1,561.00 million. The government, constrained by a tight financing gap, 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 1,124.00 million from 91-day, 182-day, and 364-day bills.