Treasury Rates for January 31, 2022

Security	Interest Rates
91 – Day Bill	12.6335%
182 – Day Bill	13.2270%
364 – Day Bill	16.7446%

The recent posture of the government to resort to the domestic market to raise the needed funds to supplement its 2022 budget saw short-term Government of Ghana Treasury bills rates record gains after a similar performance last week. In the coming weeks, we expect the yields on Treasury papers to persist upwards across all tenors on the back of expectations of increased borrowing by the government amid a high inflationary environment.

The 91-day bill edged up by 9 basis points (bp) this week to build on last week’s 2 bps gain. It rose from 12.5461% posted last week to 12.6335% this week, its highest since June, 2020.

The 182-day bill rose for the second consecutive time this week as it added a 1 bp gain this week. It cleared at 13.2270% this week, from 13.2121% recorded last week.

After registering a 6 bp gain last week, the 364-day bill continued its run with a 4 bps gain this week. It soared from 16.7033% posted last week to 16.7446% this week.

Week-on-Week Changes

Term	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	12.5461%	12.6335%	0.09	0.70%	0.86%
182 – Day	13.2121%	13.2270%	0.01	0.11%	0.12%
364 – Day	16.7033%	16.7446%	0.04	0.25%	0.61%

Auction results from the Bank of Ghana (BoG) tender 1783 revealed investors bullish towards the government’s short-term securities in anticipation of rates hikes.

A total of GHS 1,221.59 million worth of bids were tendered for the 91-day, 182-day, and 364-day bills against the government’s target amount of GHS 1,191.00 million. The government, however, accepted GHS 1,218.26 million worth of bids including all bids tendered for the 364-day bill.

In the week ahead, we expect the government to raise a total of GHS 932.00 million from 91-day and 182-day bills and a tap issue of a 5-year domestic Dollar-denominated Treasury bond expecting to raise USD 168.94 million with a coupon rate of 6.00%. Later in February, we also expect the government to return to the domestic market to raise a total of GHS 1,400.00 million and GHS 1,200.00 million from 2-year and 7-year papers respectively.