Treasury Rates for October 5th 2020

Security	Interest Rates
91 – Day Bill	14.0461 %
182 – Day Bill	14.1386 %
364 – Day Bill	16.9804 %
2 – Year Fixed Rate Note	18.5000 %

Short-term Government of Ghana Treasury bill rates posted a mixed performance this week after the yields on both the 91-day and the 182-day bills rose simultaneously last week.

The yield on the 91-day bill gained a 1 basis point (bps) to build on previous week’s 3 bps gain. It rose from 14.0357% posted last week to 14.0461% this week, its highest in 5 weeks.

The 182-day bill declined by a 1 bps this week to end two weeks of consecutive gains. It fell to 14.1386% this week from 14.1478% posted last week.

The yield on the 364-day was little changed this week as it declined marginally from 16.9866% posted at its last issuance to 16.9804% this week.

Week-on-Week Changes for 5^th October, 2020

	28-Sep-20	5-Oct-20	CHANGE	PERCENTAGE CHANGE
91 – Day	14.0357%	14.0461%	0.01	0.0741%
182 – Day	14.1478%	14.1386%	-0.01	-0.0650%

Auction results from Bank of Ghana (BoG) tender 1714 further indicated that demand for the government’s short-term assets strengthened to beat the government’s target amount after a similar resilient performance last week.

A total of GHC 831.21 million bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHC 712.00 million. The government accepted GHC 821.21 million of total bids tendered.

The government during the week issued a 2-year fixed-rate note seeking to raise GHC 1,000.00 million from the local market. The issuance was 50% oversubscribed as investors continue to remain hopeful of a rise in the yields of the government’s medium to long-term assets. The yield on the 1-year paper climbed from 18.2500% at its last issuance in August to 18.5000%.

Next week, the government will be expected to increase its intended target amount to raise a total of GHC 876.00 million from 91-day and 182-day bills.