The interest at which government borrows on the treasury market trended downwards in the second quarter of 2020 to reflect monetary policy transmission after the policy rate was reduced by 150 basis points (bps) to 14.50 percent in Q1:2020.
The 91-day treasury bill declined by 78 bps year on year to 13.9 per cent while the 182-day bill declined by 118 bps to settle at 14.1 percent.
The 364-day T-bill rates also declined by 105 bps on year-on-year basis to settle at 16.9 percent.
This was contained in the Bank of Ghana’s second quarter bulletin report.
However, for the corresponding quarter in 2019, the interest rates on the 91-day and 182-day recorded a year-on-year increase of 145 bps and 137 bps, respectively.
Compared with rates in the first quarter of 2020, the interest rates on the 91-day, the 182-day, and 364-day bills decreased by 75 bps, 113 bps, and 86 bps, respectively.
The rate on the 2-year fixed note decreased by 100 bps on a year-on-year basis to settle at 18.8 percent at the end of the second quarter of 2020. Compared with the corresponding quarter in 2019, the rate on the 2-year fixed note increased by 375 bps from 16.0 percent in June 2018 to 19.8 percent in June 2019.
The rates on the 3-year Government of Ghana (GOG) bonds declined by 85 bps from 19.7 percent recorded in the second quarter in 2019 to 18.9 percent at the end of Q2:2020. Quarter-on-quarter, the rate on the 3-year GOG bond also decreased by 190 bps from 20.8 percent recorded in Q1:2020.
Rates on the 5-year Government of Ghana (GOG) bonds, decreased by 50 bps on year-on-year
terms to end the review quarter at 19.3 percent. The 6-year, 7-year, and 10-year
GOG bonds recorded no change in interest rate on a year-on-year basis to settle at 21.0 percent, 16.3 percent, and 19.8 percent respectively in Q2:2020.
For the corresponding quarter in 2019, the 3-year, the 5-year, and 10-year GOG bond recorded increases in interest rates whiles the other medium to longer-dated securities registered no year-on-year changes in rates.
