Treasury Rates [January 02, 2023]

Security	Interest Rates
91 – Day Bill	35.3634%
182 – Day Bill	35.9796%
182 – Day Bill	35.8944%

The yields on the government’s short-term papers began the first week of the year mixed as Treasury rates begin to show signs of stability after undergoing an upward trend in most parts of 2022. The 91-day bill was little changed this week from last week’s level, whilst the yield on the 182-day bill went up marginally by 8 basis points (bps) to clear at 35.9796%. The 364-day bill lost by 21 bps to move from 36.1040% posted last week to clear at 35.8944% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	35.3608%	35.3634%	0.00	0.01%	0.00%
182 – Day	35.9030%	35.9796%	0.08	0.21%	0.00%
364 – Day	36.1040%	35.8944%	-0.21	-0.58%	0.00%

Auction results of tender 1831 showed that after a slew of oversubscriptions, demand fell short of the government’s target amount as investors examine the impact of cooling consumer prices on inflation figures following the strong pick in the value of the local currency against its majors coupled with the reduction in the prices of petroleum products.

A total of GHS 1,825.44 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 1,869.00 million. The government, however, accepted GHS 1,809.42 million of the total bids submitted.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 1,492.00 million from 91-day and 182-day bills.