Treasury Rates for December 7th 2020

Security	Interest Rates
91 – Day Bill	14.0720%
182 – Day Bill	14.1265%
2 – Year Fixed Rate Note	18.5000%

Ahead of the announcement of consumer prices data for the month of November, short-term Government of Ghana Treasury bills rates stayed relatively stable this week after a similar performance last week. The rate of inflation will be expected to further inch closer to the Bank of Ghana’s medium-term inflation target band buoyed by a relatively stable Cedi and fuel prices.

The 91-day was little changed this week as it fell marginally from 14.0749% posted last week to 14.0720% this week.

The yield on the 182-day bill declined by 1 basis point (bps) to erase part of previous week’s 1 bps gain. It dipped from 14.1371% posted last week to 14.1265% this week.

Week-on-Week Changes for 7^th December, 2020

	30-Nov-20	7-Dec-20	CHANGE	PERCENTAGE CHANGE
91 – Day	14.0749%	14.0720%	-0.00	-0.0206%
182 – Day	14.1371%	14.1265%	-0.01	-0.0750%

Auction results from Bank of Ghana (BoG) tender 1723 further indicated that demand for the government’s short-term papers picked up steam this week after recording a brief undersubscription in late November.

A total of GHC 1,179.40 million bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 1,012.00 million. The government accepted all bids tendered.

The government, this week, issued its last 2-year fixed-rate note for the year in which it sought to raise GHC 1,200.00 million from the domestic market. Auction results showed that demand for the medium-term paper dwindled after the yield on the paper stayed at 18.5000% for the second consecutive time. A total of GHC 371.72 million bids were tendered and accepted for the paper.

Next week, the government will be expected to reduce its intended target amount to raise a total of GHC 925.00 million from 91-day and 182-day bills.