Treasury Rates For January 27th, 2020

Period	Interest Rates
91 – Day	14.6898 %
182 – Day	15.1477 %
364 – Day	17.8813 %

This week, short-term Government of Ghana (GoG) Treasury bill rates posted a mixed performance ahead of the first Monetary Policy Committee (MPC) meeting for the year later in the week. Last year, the Ghanaian economy suffered a shock after the MPC unexpectedly lowered its key rate from 17.0% to 16.0%. Consequently, the MPC will be expected to take a cautious stance in its 2020 sittings as the country heads to the polls in December.

The 91-day bill erased previous week’s gains as it fell by a 1 basis point from 14.7022% posted last week to 14.6898% this week.

The 182-day bill failed to recover from previous week’s low as it fell by 2 bps. It lowered to 15.1477% this week from 15.1689% posted the previous week.

The 364-day bill, however, surged by 5 bps to rise from 17.8349% to 17.8813% this week.

Week on week changes for 27^th January, 2020

	20-Jan-20	27-Jan-20	CHANGE	PERCENTAGE CHANGE
91 – Day	14.7022%	14.6898%	-0.0124	-0.0843%
182 – Day	15.1689%	15.1477%	-0.0212	-0.1398%

Auction results from Bank of Ghana (BoG) tender 1678 further indicated that demand rose for the third consecutive time to beat the government’s target amount.

Total bids tendered for the 91-day, 182-day, and 364-day bills came in at GHC 929.48 million against the government’s target amount of GHC 925.00 million. The government, however, was determined to accept its target amount. GHC 925.08 million bids were subsequently accepted by the government.

Next week, the government is expected to further increase its target amount to raise a total of GHC 1,649.00 million from 91-day, 182-day, and 364-day bills.