Treasury Rates [October 10, 2022]

Security	Interest Rates
91 – Day Bill	30.9634%
182 – Day Bill	31.9402%

Short-term Government of Ghana Treasury bills rates were up this week in line with the recent upward adjustment in the monetary policy rate announced last week. The monetary policy committee of the Bank of Ghana hiked the prime rate by 2.5 percentage points from 22.0% to 24.5% as the central bank continued its tougher stance against stubbornly high inflation figures. The committee’s decision was largely influenced by elevated inflation with the balance of risks on the upside. Rising inflation expectations are estimated to continue to push Treasury yields upwards.

The yield on the 91-day bill posted a larger margin of increase this week compared to moderate gains recorded over the past two weeks. It went up by 51 basis points (bps) this week to clear at 30.9634% from 30.4531% posted last week.

The yield on the 182-day cleared higher this week, coming in with an increase of 37 bps compared to last week’s 23 bps jump. It moved up from 31.5681% posted last week to clear at 31.9402% at last week’s auction.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	30.4531%	30.9634%	0.51	1.68%	147.20%
182 – Day	31.5681%	31.9402%	0.37	1.18%	141.76%

Auction results of tender 1819 revealed that investors continued to seek safety in government assets as the local economy continue to face headwinds. The government’s target amount was oversubscribed by 15.4%, an improvement over last week’s 10.5% oversubscription rate.

A total of GHS 1,357.39 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of GHS 1,176.00 million. The government accepted all GHS 200.93 million worth of bids tendered for the 182-day bill and accepted GHS 1,156.28 million out of GHS 1,156.46 million worth of bids tendered for the 91-day bill.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 1,088.00 million from 91-day, 182-day, and 364-day bills.