Treasury Rates [October 3, 2022]

Security	Interest Rates
91 – Day Bill	30.4531%
182 – Day Bill	31.5681%
364 – Day Bill	31.5473%

The yields on the government’s short-term securities were up this week, trending upwards in ranges comparable to ranges seen last week. This week’s Treasury performance comes amidst speculations of a possible debt restructuring after Ghana suffered another downgrade of its credit ratings. Fitch Ratings downgraded Ghana’s Issuer Default Rating from CCC to CC, citing high debt service, constrained financing, and a possible debt restructuring as reasons for the recent downgrade.

The 91-day bill was up by 27 basis points (bps) this week, similar to last week’s movement. It cleared at 30.4531% this week, up from 30.1800% recorded last week.

The yield on the 182-day bill moved up by 23 bps to add to last week’s 20 bps surge. It rose from 31.3414% posted last week to clear at 31.5681% this week.

The 364-day bill came in as the star performer for the week, coming in with a jump of 1.07 percentage points to clear at 31.5473% this week, from 30.4730% posted last week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	30.1800%	30.4531%	0.27	0.90%	143.13%
182 – Day	31.3414%	31.5681%	0.23	0.72%	138.95%
364 – Day	30.4730%	31.5473%	1.07	3.53%	89.54%

Auction results of tender 1818 revealed that after last week’s disappointing results where bids failed to meet the government’s target amount, demand was steady this week after a communication from the visiting IMF team sought to allay the fears of investors. Bids this week, were oversubscribed by a little over 10.5% as investor confidence creeps in.

A total of GHS 999.86 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 905.00 million. The government, constrained by a tight financing gap, accepted all bids tendered.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 1,176.00 million from 91-day and 182-day bills.