Treasury Rates for May 24th 2021

Security	Interest Rates
91 – Day Bill	12.7566%
182 – Day Bill	13.5402%

In line with the decline in the recent inflation reading, short-term Government of Ghana Treasury bill rates fell this week to build on previous weeks’ downward performance. The rate of inflation for April was reported at 8.5%, the least since the economy was hit by the pandemic last year.

After registering a marginal decline last week, the 91-day bill further declined by 3 basis points (bps) to send its total accumulated loss to 134 bps. The yield on the 91-day bill fell from 12.7880% posted last week to 12.7566% this week.

The yield on the 182-day bill lost 1 bps this week, adding onto previous week’s 2 bps dip. It tumbled from 13.5522% last week to 13.5402% this week.

Week-on-Week Changes for 24^th May, 2021

Term	Previous	Current	Change	Percentage Change	Year-to-Date
91 – Day	12.7880%	12.7566%	-0.03	-0.25%	-9.50%
182 – Day	13.5522%	13.5402%	-0.01	-0.09%	-4.31%

Auction results from Bank of Ghana (BoG) tender 1747 further indicated that demand was weak as investors remain wary that sluggish inflation figures may keep Treasury yields lower.

A total of GHC 628.57 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 791.00 million. The government was subsequently forced to accept all bids tendered.

Next week, the government will be seeking to raise a total of GHC 1,177.00 million from 91-day, 182-day, and 364-day bills.