Treasury Rates For September 30th 2019

Treasury Rates For September 30^th 2019

Period	Interest Rates
91 – Day	14.6899
182 – Day	15.1455%
364 – Day	17.9081%
2 – Year Fixed Rate Bond	19.0000%

After a rebase of the consumer price index to take into account changes in the consumption pattern over time, short-term Government of Ghana Treasury bill rates extended its relative stability as the yield on the 91-day and 182-day bills rose marginally. According to the Ghana Statistical Services, the rate of inflation for August, 2019 came in at 7.8% after pegging the reference period at 2018. There is however a higher inflation expectation following an upward review in transport fares and prices of petroleum products, which will mount pressure on the consumer price index.

The yield on the 91-day bill after a 1 basis point (bps) fall last week, rose marginally to recover part of previous week’s dip. It rose to 14.6899% this week from 14.6839% posted last week.

The 182-day bill was little changed this week as it rose marginally to build on previous week’s tiny gain. It rose from 15.1425% recorded last week to 15.1455%.

The 364-day bill after posting a brief recovery last week failed to register gains this week as it fell marginally to 17.9081% this week from 17.9106%.

Week on week changes for 30^th September, 2019

	23-Sep-19	30-Sep-19	CHANGE	PERCENTAGE CHANGE
91 – Day	14.6839%	14.6899%	0.0060	0.0409%
182 – Day	15.1425%	15.1455%	0.0030	0.0198%

Auction results from Bank of Ghana (BoG) tender 1661 further showed that demand for the government’s short-term Treasury instruments remained weak this week as investors focused on the government’s medium-term paper.

Total bids tendered for the 91-day, 182-day, and 364-day bills stayed at GHC 569.15 million against the government’s ambitious target amount of GHC 965.00 million. All bids tendered were accepted.

As per the issuance calendar, the government issued a 2-year term paper which was intended to raise a total of GHC 400.00 million. At the close of the book-building process, a total of GHC 341.00 million bids were tendered and accepted. The yield on the 2-year term paper fell from 19.7500% to 19.0000%, affirming the general fall in rates.

Next week, the government is expected to reduce its target amount to raise a total of GHC 868.00 million from 91-day, 182-day, and 364 bills.