Treasury Rates [July 11, 2022]

Security	Interest Rates
91 – Day Bill	25.8936%
182 – Day Bill	26.5477%
364 – Day Bill	27.4901%

Short-term Government of Ghana Treasury yields were mixed this week as the 182-day bill recorded its first week-on-week decline in over six months whilst that of the 91 and 364 tenors rose to build on previous gains. Treasury yields have posted moderate gains over the past few weeks after embarking on a sharp rise in the second quarter of the year. This week’s Treasury performance comes ahead of the presentation of the mid-year budget review where attention will be drawn to strategies to be adopted to reduce the general economic hardships at a time when the country is seeking an IMF bailout.

The 91-day bill climbed up for the twenty-fifth consecutive time this week, coming in with a marginal gain of 1 basis point (bps) after last week’s 24 bps gain. It climbed up to 25.8936% this week from 25.8822% posted last week.

The 182-day bill registered its first weekly decline since January 10 as it failed to build on last week’s 17 bps gain. It fell by 2 bps to 26.5477% this week from 26.5718% posted last week.

The 364-day bill followed the recent trajectory as it cleared at a slower pace compared to previous weeks. It climbed up from 27.4271% last week to clear at 27.4901% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	25.8822%	25.8936%	0.01	0.04%	106.73%
182 – Day	26.5718%	26.5477%	-0.02	-0.09%	100.95%
364 – Day	27.4271%	27.4901%	0.06	0.23%	65.17%

Auction results of tender 1806 showed that there was a huge expression of interest in the government’s short-term bills as bids were oversubscribed by a little over 40%.

A total of GHS 1,328.73 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 928.00 million. The government accepted all GHS 214.05 million worth of bids tendered for the 182-day bill and accepted GHS 1,001.33 million and GHS 106.46 million out of the GHS 1,007.62 million and 107.06 million worth of bids tendered for the 91 and 364 tenors.

In the week ahead, we expect the government to raise a total of GHS 932.00 million from 91-day and 182-day bills.