Treasury Rates [April 17, 2023]

Security	Interest Rates
91 – Day Bill	19.7444%
182 – Day Bill	22.4709%
364 – Day Bill	26.9585%

Treasury bills rates were mixed at this week’s issuance as the yields on the 91 and 182 tenors strengthened to add to previous week’s gains whilst the yield on the 364-day bill recorded a dip to erase part of its recent gain. This week’s Treasury performance comes after the consumer price index maintained its downward trend as it registered its third consecutive dip on the back of a stable Cedi and a reduction in the prices of petroleum products. We expect yields on government securities to remain fairly stable in the near term as Ghana inches closer to an International Monetary Fund (IMF) deal and as inflation takes a downward trajectory.

The 91-day bill recorded its fourth consecutive tightening this week after nursing losses in most parts of February and March. It rose marginally this week to clear at 19.7444% from 19.6934% posted last week.

The yield on the 182-day bill went up by 22 basis points (bps) this week to add to last week’s 39 bps gain. It moved up from 22.2469% posted last week to clear at 22.4709 at this week’s issuance.

The 364-day bill was the lone decliner for the week, coming in a loss of 6 bps, failing to build on last week’s 129 bps gain. It weakened to 26.9020% this week from 26.9585% posted last week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	19.6934%	19.7444%	0.05	0.26%	-44.17%
182 – Day	22.2469%	22.4709%	0.22	1.01%	-37.55%
364 – Day	26.9585%	26.9020%	-0.06	-0.21%	-25.05%

Auction results of tender 1846 revealed that the government met its target as investors renewed their confidence in the domestic economy as Ghana draws nearer to securing an IMF board-level agreement after the sovereign is reported to have made significant progress in its debt restructuring negotiations with its bilateral creditors. The government’s target amount was thus oversubscribed by 7.5%.

A total of GHS 1,791.58 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of 1,666.00 million. The government subsequently accepted all bids tendered.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 1,958.00 million from 91-day, 182-day, and 364-day bills.