Treasury Rates for July 5th 2021

Security	Interest Rates
91 – Day Bill	12.5873%
182 – Day Bill	13.3783 %

After several weeks of an impressive strong demand for the government’s short-term Treasury securities, demand was sluggish this week as the 91-day and the 182-day bills were largely undersubscribed. This comes at a time when yields on Treasury assets are trending at more than 3-year lows amid a buoyant stock market performance.

The 91-day bill resumed its steep downward trajectory this week after posting a marginal decline last week. It declined by 4 basis points (bps) to 12.5873% this week from 12.6247% recorded last week as it extended its weekly decline for the ninth consecutive time.

The 182-day was little changed this week, failing to end eight weeks of continuous decline in rate. It weakened from 13.3797% last week to 13.3783% this week.

Week-on-Week Changes

Term	Previous	Current	Change	Percentage Change	Year-to-Date
91 – Day	12.6247%	12.5873%	-0.04	-0.30%	-10.70%
182 – Day	13.3797%	13.3783%	0.00	-0.01%	-5.45%

Auction results from Bank of Ghana (BoG) tender 1753 showed that investors had seemingly begun to react to the continuous drop in Treasury yields as the 91-day and 182-day bills were undersubscribed by 37%, the worst in 2021.

A total of GHC 735.58 million worth of bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 1,178.00 million. The government was ostensibly forced to accept all bids tendered.

Next week, the government will be seeking to raise a total of GHC 1,305.00 million from 91-day, 182-day, and 364-day bills.