Treasury Rates for March 23rd 2020

Period	Interest Rates
91 – Day	14.7539 %
182 – Day	15.1809 %
5 – Year Fixed Rate	21.7000 %

This week, short-term Government of Ghana Treasury bill rates posted a mixed performance after the Ghanaian central bank announced a number of stimulus packages in a bid to reduce the adverse impact of the spreading COVID-19. In line with these measures, the central bank of Ghana joined several monetary authorities to cut their primary rates.

After two weeks of strengthening, the yield on the 91-day bill fell marginally to erase part of previous weeks’ gains. It dipped from 14.7586% posted last week to 14.7539% this week.

The 182-day bill gained marginally to recover part of previous week’s loss. It rose to 15.1809% this week from 15.1772% recorded the previous week.

Week-on-Week Changes for 23^rd March, 2020

	16-Mar-20	23-Mar-20	CHANGE	PERCENTAGE CHANGE
91 – Day	14.7586%	14.7539%	-0.0047	-0.0318%
182 – Day	15.1772%	15.1809%	0.0037	0.0244%

Auction results from Bank of Ghana (BoG) tender 1686 further confirmed low investor participation amid market uncertainties as investors prefer to hold cash.

Total bids tendered for the 91-day and 182-day bills came in at GHC 682.83 million, against the government’s target amount of GHC 754.00 million. The government accepted all bids tendered.

As part of the government’s issuance calendar for the first quarter of the year, the government issued a 5-year fixed-rate bond targeted at raising GHC 1,000.00 million. Despite the jump in rate from 19.50% as of mid-2019 to 21.70%, the government realized GHC 458.53 million bids of which all were accepted.

Next week, the government is expected to further reduce its target amount to raise a total of GHC 715.00 million from 91-day, 182-day, and 364-day bills.