Treasury Rates for August 31st 2020

Security	Interest Rates
91 – Day Bill	14.0599 %
182 – Day Bill	14.0771 %
2 – Year Fixed Rate Note	18.2500 %

Short-term Government of Ghana (GoG) Treasury bill rates remained on course to converge as the yield on the 91-day bill continues to strengthen whilst the yield on the 182-day bill struggles to post major gains after two weeks of declining performance.

The 91-day bill gained 2 basis points (bps) this week to build on previous week’s 3 bps gain in line with the recent rise in the rate of inflation. The yield on the 91-day bill rose from 14.0367% posted last week to 14.0599% this week, its highest in more than 3 months.

The 182-day bill dipped by 3 bps after it failed to recover from previous week’s marginal decline. It fell to 14.0771% this week from 14.1110% posted last week.

Week-on-Week Changes for 31^st August, 2020

	24-Aug-20	31-Aug-20	CHANGE	PERCENTAGE CHANGE
91 – Day	14.0367%	14.0599%	0.0232	0.1653%
182 – Day	14.1110%	14.0771%	-0.0339	-0.2402%

Auction results from Bank of Ghana (BoG) tender 1709 further showed that demand for the government’s short-term assets picked up this week after weeks of sluggish performance as investors remain hopeful of an upsurge in Treasury yields.

A total of GHC 806.94 million bids were tendered for the 91-day and 182-day against the government’s target amount of GHC 577.00 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 a 2-year fixed-rate note in which it sought to raise GHC 600.00 from the domestic market. There was a high investor optimism towards the 2-year paper as it was oversubscribed by 44.5% despite a decline in the yield from 18.75% at its last issuance in May to 18.25%

Next week, the government is expected to more than double its intended target amount to raise a total of GHC 1,410.00 million from 91-day, 182-day, and 364-day bills.