Treasury Rates [December 05, 2022]

 

Security	Interest Rates
91 – Day Bill	36.1825%
182 – Day Bill	36.7277%

 

Short-term Treasury yields were up from the previous week’s levels on the back of expectations of higher inflation numbers as economic activities steadily pick up momentum as the year wraps up. Despite the strong pick-up in Treasury yields in 2022, inflation numbers have consistently lingered above Treasury rates. We expect to find the persistent upward pressures on consumer goods to continue to drag yields further upward in the short to medium-term.

The yield on the 91-day bill went up by 64 basis points (bps), adding onto last week’s 34 bps jump to send its total accumulated gains in 2022 to 23.66 percentage points. It cleared at 36.1825% this week, up from 35.5427% cleared last week.

The 182-day bill rose by a similar margin posted last week, coming in with a gain of 35 bps over last week’s 39 bps gain. It moved up from 36.3769% posted last to clear at 36.7277% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	35.5427%	36.1825%	0.64	1.80%	188.87%
182 – Day	36.3769%	36.7277%	0.35	0.96%	178.00%

 

Auction results of tender 1827 showed that despite concerns of a possible debt restructuring, bids came in excess of the government’s target amount as investors continue to show strong interest in short-dated papers. This week’s target amount was thus oversubscribed by nearly 50.0%.

A total of GHS 2,766.43 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of GHS 1,852.00 million. The government accepted all GHS 2,245.56 million worth of bids tendered for its 91-day paper and accepted GHS 502.01 million bids from GHS 519.87 million worth of bids tendered for its 182-day paper.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 1,816.00 million from 91-day, 182-day, and 364-day bills.