Treasury Rates [July 18, 2022]

Security	Interest Rates
91 – Day Bill	25.9550%
182 – Day Bill	27.4616%

Ahead of the July Monetary Policy Committee (MPC) meeting to be held later this week, short-term Government of Ghana (GoG) Treasury bills rates registered a positive uptick following the path of the recent climb in the consumer price index. The MPC will be expected to deliver its third rate hike in the year after inflation in June rose to its highest since 2003 on the back of significant increases in the prices of imported items.

After posting a marginal increase last week, the yield on the 91-day bill rose by 6 basis points (bps) to build on previous weeks’ gains. It strengthened from 25.8936% posted last week to clear at 25.9550% this week.

The 182-day bill rose sharply to recover from last week’s 2 bps dip to post a gain of 91 bps this week. It cleared at 27.4616% this week from 26.5477% posted last week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	25.8936%	25.9550%	0.06	0.24%	107.22%
182 – Day	26.5477%	27.4616%	0.91	3.44%	107.86%

Auction results of tender 1807 revealed for the third consecutive time, bids were oversubscribed as investors continued to turn their attention to fixed income securities following the strong gain in inflation numbers.

A total of GHS 1,150.89 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of GHS 932.00 million. The government accepted GHS 886.24 million and GHS 202.25 million worth of bids tendered for its 91 and 182 tenors respectively.