Treasury Rates [August 01, 2022]

Security	Interest Rates
91 – Day Bill	26.7149%
182 – Day Bill	28.2552%

Short-term Government of Treasury bills rates continued their upward trajectory this week but at a much slower pace compared to that recorded last week on the back of growing expectations of the deceleration in the last inflation reading. This week’s Treasury performance comes after the Bank of Ghana’s monetary policy committee kept its benchmark rate unchanged at 19.0% citing that the macroeconomic framework that will underpin an agreed IMF-supported program will present a stronger coordinated monetary and fiscal policy framework that will anchor price stability and prevent a wage-price spiral.

The yield on the 91-day bill climbed up by 37 basis points (bps) this week to build on last week’s 39 bps gain. It cleared at 26.7149% this week, from 26.3403% posted last week.

The yield on the 182-day bill slowed further this week for the second consecutive time, coming in with a 19 bps gain compared to last week’s 60 bps gain. It cleared at 28.2552% this week from 28.0613% recorded last week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	26.3403%	26.7149%	0.37	1.42%	113.28%
182 – Day	28.0613%	28.2552%	0.19	0.69%	113.87%

Auction results of tender 1809 revealed that for the sixth time running, the government met its target amount as investors continue to seek solace in government papers. Bids were oversubscribed by a little over 90%.

A total of GHS 1,083.55 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of GHS 564.00 million. The government subsequently accepted all bids tendered.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 1,153.00 million from 91-day, 182-day, and 364-day bills.