| Period | Interest Rates |
| 91 – Day | 14.6960% |
| 182 – Day | 15.1446% |
| 364 – Day | 18.2755% |
| 6 – Year Fixed Rate Bond | 21.0000% |
This week, short-term Government of Ghana (GoG) Treasury bill rates failed to build on previous weeks’ gains after Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) reduced the policy rate by 100 basis points (bps) from 17.0% to 16.0%, the first decline since May, 2018. According to the committee, immediate risks to the disinflation path are well contained, and the current conditions provide scope to translate some of the gains in the macro stability to the economy thus the reason to cut the policy rate.
The yield on the 91-day bill posted its first weekly loss in 9 weeks as it remained a little changed this week. It weakened from 14.6980% last week to 14.6960% this week.
The yield on the 182-day bill also declined marginally from 15.1452% last week to 15.1446% this week. This represents the first decline since the start of the year.
Week on week changes for 4th February, 2019
| 28-Jan-19 | 4-Feb-19 | CHANGE | PERCENTAGE CHANGE | |
| 91 – Day | 14.6980% | 14.6960% | -0.0020 | -0.0136% |
| 182 – Day | 15.1452% | 15.1446% | -0.0006 | -0.0040% |
Auction results from Bank of Ghana (BoG) tender 1627 further showed that demand for the short to medium-term Treasury instruments rose sharply to beat the government’s target amount of GHC 662.00 million. Demand for the 91-day, 182-day and 364-day bills was oversubscribed by 5%. The yield on the 364-day bill built on previous week’s gains as it rose from 18.2104% last week to 18.2755% this week. Total bids tendered and accepted for the 91-day, 182-day and 364-day bills came in at GHC 697.19 million.
The government also issued a 6-year fixed rate bond this week at a yield of 21.0000%. The government accepted all GHC 370.31 million bids tendered.
Next week, the government is expected to increase its target amount to raise a total of GHC 762.00 million from 91-day, 182-day and 364-day bills.
The Treasury Yield Curve
