Treasury Rates for July 20th 2020

Security	Interest Rates
91 – Day Bill	13.8704 %
182 – Day Bill	14.0580 %
6 – Year Fixed Rate Bond	19.5000 %

Short-term Government of Ghana (GoG) Treasury bill rates was mixed this week, reversing the pattern of previous week’s mixed results. This week’s performance of the government’s short-term assets comes after the consumer price index slowed in June after peaking at a 2-year high in May.

The 91-day bill ended two weeks of gains as it fell marginally this week to erase part of previous week’s 2 basis points (bps) gain. It declined from 13.9889% posted last week to 13.8704% this week.

The yield on the 182-day bill strengthened this week to recover 4 bps from a 7 bps decline suffered last week. It rose from 14.0204% posted last week to 14.0580% this week.

Week-on-Week Changes for 20^th July, 2020

	13-Jul-20	20-Jul-20	CHANGE	PERCENTAGE CHANGE
91 – Day	13.9889%	13.8704%	-0.1185	-0.8471%
182 – Day	14.0204%	14.0580%	0.0376	0.2682%

Auction results from Bank of Ghana (BoG) tender 1703 further indicated that demand for the government’s short-term Treasury assets slowed this week as rates continue to struggle to post a comeback.

A total of GHC 731.68 million bids were tendered for the 91-day and 182-day bills, against the government’s target amount of GHC 803.00 million. The government subsequently accepted all bids tendered.

As per the government’s issuance calendar for the third quarter of the year, the government issued its second 6-year fixed rate bond after a debut issuance in February, 2019. A total of GHC 358.55 million bids were tendered as against an intended target amount of GHC 800.00 million. In accordance with the drastic fall in general interest rates, the yield on the 6-year fixed rate bond fell from 21.00% at its last issuance to 19.50% this week.

Next week, the government is expected to significantly increase its target amount to raise a total amount of GHC 1,261.00 million from 91-day, 182-day, and 365-day bills.