Treasury Rates for February 15th 2021

Security	Interest Rates
91 – Day Bill	13.2322%
182 – Day Bill	13.9640%
364 – Day Bill	16.8592%

Strong demand for the government’s short-term Treasury bills continue to send the yields on the short-term papers on a downward trajectory as investors seek safety in government assets. The yields on the 91-day and the 182-day bills fell for the fifth consecutive time this week despite expectations of high inflation figures.

After recording a 24 basis point (bps) dip last week, the 91-day bill further plummeted by 58 bps, its biggest weekly decline in more than 3 years. It fell from 13.8166% recorded last week to 13.2322% this week.

The yield on the 182-day bill declined by 5 bps this week to build on previous week’s 8 bps dip. It fell from 14.0102% posted last week to 13.9614% this week, its lowest since September, 2018.

The 364-day bill similarly declined as it dropped by 10 bps to 16.8592% this week from 16.9596% at its last issuance.

Week-on-Week Changes for 15^th February, January, 2021

Term	Previous	Current	Change	Percentage Change
91 – Day	13.8166%	13.2322%	-0.58	-4.2297%
182 – Day	14.0102%	13.9614%	-0.05	-0.3483%
364 – Day	16.9596%	16.8592%	-0.10	-0.5920%

Auction results from Bank of Ghana (BoG) tender 1733 further showed strong demand for the government’s short-term Treasury assets after they were oversubscribed by nearly 10%. This follows weeks of similar strong demand in Treasury assets.

A total of GHC 1,327.20 million bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHC 1,213.00 million. The government accepted all bids tendered for the 91-day and 364-day bills but accepted GHC 121.68 million bids as against GHC 121.80 million bids tendered for the 182-day bill.

Next week, the government will be expected to reduce its intended target amount to raise a total of GHC 773.00 million from 91-day and 182-day bills.