Treasury Rates For December 9th 2019

Period	Interest Rates
91 – Day	14.6884%
182 – Day	15.1487%
2 – Fixed Rate Note	20.9500%

This week, short-term Government of Ghana (GoG) Treasury bill rates rose marginally in line with a 10 basis points (bps) increase in the recent inflation reading. The inflation rate for October, 2019 rose from 7.6% in September to 7.7% buoyed by a pickup in transportation fares.

The yield on the 91-day bill climbed up marginally to recover part of previous week’s 1 bps dip. It rose to 14.6884% this week from 14.6836% recorded the previous week.

The 182-day bill rose to its highest in 17 weeks after posting weeks of consecutive increases. It strengthened to 15.1487% from 15.1425% recorded the previous week.

Week on week changes for 9^th December, 2019

	2-Dec-19	9-Dec-19	CHANGE	PERCENTAGE CHANGE
91 – Day	14.6836%	14.6884%	0.0048	0.0327%
182 – Day	15.1425%	15.1487%	0.0062	0.0409%

Auction results from Bank of Ghana (BoG) tender 1671 further showed that demand for the government’s short-term securities rebounded after failing to meet expectations in the past two weeks.

Total bids tendered for the 91-day and 182-day bills came in at GHC 961.08 million against the government’s target amount of GHC 958.00 million. All bids tendered were accepted.

As per the government’s issuance calendar, a 2-year fixed-rate term note was issued this week to raise a total of 1,068.00 million. Total bids tendered and accepted came in at GHC 591.03 despite a sharp jump in the yield on the term note. The rate on the 2-year term note rose from 19.50% at its last issuance in November to 20.95%, its highest in more than 2 fiscal years.

Next week, the government is expected to reduce its target amount to raise GHC 826.00 million from 91-day, 182-day, and 364-day bills.