Treasury Rates for February 21, 2022

Security	Interest Rates
91 – Day Bill	12.9145%
182 – Day Bill	13.2945%

The yields on the government’s short-term Treasury assets extended its upward run this week on the back of expectations of higher inflation figures as investors demand better compensation on their investments at a time when the inflation rate is trending above the rates on 91-day and 182-day bills. With the recent mounting pressures on consumer goods, we expect Treasury yields to continue to trend upwards in the near to medium term.

The 91-day bill recorded an impressive 23 basis points (bp) jump this week to send its accumulated gains to 39 bp. It rose from 12.6853% posted last week to 12.9145% this week, its highest since mid-March, 2021.

The 182-day bill rose for the six consecutive time after it gained 4 bp this week. It climbed up to 13.2945% this week from 13.2551% recorded last week.

Week-on-Week Changes

Term	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	12.6853%	12.9145%	0.23	1.81%	3.10%
182 – Day	13.2551%	13.2945%	0.04	0.30%	0.63%

Auction results from the Bank of Ghana (BoG) tender 1786 showed strong investor interests in the government’s short-term securities as demand continues to come in excess of the target amount.

A total of GHS 827.14 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHS 664.00 million. The government subsequently accepted all bids tendered.

In the week ahead, we expect the government to raise a total of GHS 1,324.00 million from 91-day, 182-day, and 364-day bills. Later in the month, we also expect the government to return to the domestic market to raise a total of GHS 1,200.00 million from a 7-year paper.