Treasury Rates [December 12, 2022]

Security	Interest Rates
91 – Day Bill	35.5687%
182 – Day Bill	36.5289%
364 – Day Bill	36.1871%

Government of Ghana Treasury bills rates were mixed this week as yields on the 91 and 182 tenors dipped for the first time after several weeks of gains whilst that on the 364 tenor continued its upward trend. Yields were mixed this week as investors continue to express strong interest in short-term papers after the government exempted bills from the Domestic Debt Exchange Programme. This week’s Treasury performance comes ahead of the release of inflation data for November where the inflation outlook is expected to continue to remain elevated.

The yield on the 91-day bill declined this week by as much as the gains it recorded at last week’s issuance. It fell by 61 basis points (bps) to 35.5687% this week, from 36.1825% posted last week.

The yield on the 182-day bill similarly trended downwards, declining by 20 bps as it eroded part of last week’s 35 bps gain. It dipped from 36.7277% posted last week to 36.5289% this week.

The 364-day bill was the lone gainer at last Friday’s auction, climbing up by 29 bps to build on previous issuance’s 82 bps gain. It cleared at 36.1871%, up from 35.8963% cleared last week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	36.1825%	35.5687%	-0.61	-1.70%	183.97%
182 – Day	36.7277%	36.5289%	-0.20	-0.54%	176.50%
364 – Day	35.8963%	36.1871%	0.29	0.81%	117.42%

Auction results of tender 1828 revealed that investors thronged to the government’s short-term papers with bids coming in excess of 73.0% of the government’s intended target amount. Investor participation in government bills have increased significantly in recent times as government shies away from longer-dated papers.

A total of GHS 3,157.95 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 1,816 million. The government, however, in a bid to cut its interest expenditures accepted GHS 2,405.51 million of total bids tendered.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 1,984.00 million from 91-day, 182-day, and 364-day bills.