Treasury Rates [February 13, 2023]

Security	Interest Rates
91–Day Bill	35.7339%
182 – Day Bill	35.8448%
364–Day Bill	35.6242%

Ahead of the announcement of the consumer price index where market watchers expect the inflation rate to begin the year somewhat unchanged from last year’s closing print of 54.1% on the back of the prevalence of upward price pressures on consumer goods, the yields on the government’s short-term papers were mixed as Treasury rates continue their choppy trends. This week’s Treasury performance also comes ahead of the conclusion of the government’s Domestic Debt Exchange Programme (DDEP) where the finance ministry is anticipated to announce the results of the subscriptions and give further details of the new bonds. It is also expected the government will announce the next face of its negotiation with the International Monetary Fund (IMF), where the sovereign is seeking a USD 3.0 billion bailout.

This week, the 91-day bill recorded its first weekly decline in four weeks, having lost by 1 basis point (bps) to erase part of last week’s 3 bps gain. It dipped from 35.7454% posted last week to clear at 35.7339% this week.

After several weeks of declines, the yield on the 182-day bill maintained its footing as it rose by 3 bps to build on last week’s 5 bps gain. It moved up from 35.8100% posted last week to clear at 35.8448% this week.

The yield on the 364-day bill lost by 19 bps, eroding part of the previous issuance’s 25 bps gain. It fell to 35.6242%, down from 35.8145% posted last week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	35.7454%	35.7339%	-0.01	-0.03%	1.05%
182 – Day	35.8100%	35.8448%	0.03	0.10%	-0.37%
364 – Day	35.8145%	35.6242%	-0.19	-0.53%	-0.75%

Auction results of tender 1837 showed a continuously growing demand for the government’s short-term papers as institutional investors continue to express strong interest in Treasury bills on the back of the absence of new issuances of longer-dated papers. The government achieved an oversubscription rate of 22.5%.

A total of GHS 3,378.45 million worth of bids were tendered for the 91, 182 and 364 tenors against the government’s target amount of GHS 2,759.00 million. The government, however, accepted GHS 3,349.49 million worth of the total bids tendered.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 1,708.00 million from 91-day and 182-day bills.