Treasury Rates for June 1st 2020

Security	Interest Rates
91 – Day Bill	14.0197 %
182 – Day Bill	14.0740 %
364 – Day Bill	16.8806 %
3 – Year Fixed Rate Bond	18.8500 %

Short-term Government of Ghana (GoG) Treasury bill rates posted a mixed performance this week as the yield on the 91-day bill fell after posting its biggest rise in 2020 whilst the yield on the 182-day and the 364-day bills registered an uptick in line with the recent jump in the consumer price index.

The yield on the 91-day bill dipped by 4 basis points (bps) to 14.0197% this week from 14.0619% recorded last week.

The 182-day bill gained 2 bps this week to build on previous week’s 4 bps increase. It rose from 14.0469% posted last week to 14.0740% this week, its highest since mid-April, 2020.

The yield on the 364-day bill posted its biggest gain 2020 to recover part of its recent declines. It surged by 17 bps from 16.7038% to 16.8806%, its highest since mid-March, 2020.

Week-on-Week Changes for 1^st June, 2020

	25-May-20	1-Jun-20	CHANGE	PERCENTAGE CHANGE
91 – Day	14.0619%	14.0197%	-0.0422	-0.3001%
182 – Day	14.0469%	14.0740%	0.0271	0.1929%

Auction results from Bank of Ghana (BoG) tender 1696 further showed that demand for the government’s short-term assets was weak as the short-term Treasury securities were hugely undersubscribed.

A total of GHC 575.77 million bids were tendered for the 91-day, 182-day, and 364-day bills, against the government’s target amount of GHC 1,123.00 million. The government consequently accepted all bids tendered.

As per its issuance calendar, the government issued a 3-year fixed-rate bond in which it aimed at raising a total of GHC 1,000.00 million. The government accepted all GHC 751.33 million bids tendered at a rate of 18.8500%, down from 19.0000% at its last issuance in April, 2020.

Next week, the government is expected to reduce its target amount to raise a total amount of GHC 875.00 million from 91-day and 182-day bills.