Treasury Rates for August 30, 2021

Security	Interest Rates
91 – Day Bill	12.4622%
182 – Day Bill	13.2239%

Short-term Government of Ghana Treasury bills rates picked up this week after weeks of nursing losses. The yields on both the 91-day and the 182-day bills recorded gains in line with the recent uptick in inflation readings. The inflation rate is further expected to persist upwards as price pressures from fiscal slippages, Cedi depreciation and increases in the price of petroleum products pose risks to the inflation outlook. It remains unclear what the climb in this week’s Treasury bills rates mean for Treasury yields going forward.

The 91-day bill jumped by 4 basis points (bps) this week to recover part of last week’s 5 bps dip. It strengthened from 12.4232% posted last week to 12.4622% this week

The 182-day was up by 2 bps this week from 13.2075% registered last week to 13.2239% this week.

Week-on-Week Changes

Term	Previous	Current	Change	Percentage Change	Year-to-Date
91 – Day	12.4232%	12.4622%	0.04	0.31%	-11.59%
182 – Day	13.2075%	13.2239%	0.02	0.12%	-6.54%

Auction results from Bank of Ghana (BoG) tender 1761 showed a sluggish demand for the government’s short-term assets as Treasury yields struggle to sustain gains.

A total of GHC 1,208.70 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 1,643.00 million. All bids tendered were subsequently accepted.

Next week, the government will be seeking to raise a total of GHC 1,328.00 million from 91-day, 182-day, and 364-day bills.