Treasury Rates for January 4th 2020

Security	Interest Rates
91 – Day Bill	14.0957%
182 – Day Bill	14.1497%
364 – Day Bill	16.9639%
2 – Year Fixed Rate Note	18.5000%

The yields on the 91-day and 182-day bills began the first week of 2021 registering gains despite the continual drop in the consumer price index. The 91-day bill has been on a continuous strengthening trajectory for the past four weeks as it climbed to its highest since pre-COVID this week.

The yield on the 91-day gained by a 1 basis point (bps) this week to build on previous week’s marginal gain. It climbed from 14.0895% posted last week to 14.0957% this week.

The 182-day bill posted its biggest weekly gain in two months this week as it rose by 3 bps to recover from previous week’s 1 bps loss. It rose from 14.1204% posted last week to 14.1497% this week, its highest in 9 months.

The 364-day bill failed to extend its recent gains as it dipped by 3 bps this week to erase part of previous issuance’s 1 bps gain. It declined to 16.9639% this week from 16.9968% at its last issuance.

Week-on-Week Changes for 4^th January, 2020

Term	Previous	Current	Change	Percentage Change
91 – Day	14.0895%	14.0957%	0.01	0.0440%
182 – Day	14.1204%	14.1497%	0.03	0.2075%
182 – Day	16.9968%	16.9639%	-0.03	-0.1936%
2 – Year	18.5000%	18.5000%	0.00	0.0000%

Auction results from Bank of Ghana (BoG) tender 1727 further indicated that demand for the government’s short-term papers slowed this week as general consumption levels remained high in the festive season.

A total of GHC 739.18 million bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHC 852.00 million. The government accepted all bids tendered.

The government also in the week issued a 2-year fixed-rate note which raised a total of GHC 1,029.86 million at an unchanged rate of 18.5000%.

Next week, the government will be expected to increase its intended target amount to raise a total of GHC 987.00 million from 91-day and 182-day bills.