Treasury Rates [April 24, 2023]

Security	Interest Rates
91 – Day Bill	19.8635%
182 – Day Bill	22.5758%
364 – Day Bill	27.2615%

The yields on Government of Ghana Treasury securities went up this week from last week’s levels despite expectations of slowing down inflation rate as the government’s insatiable urge for borrowing amidst a tight funding environment drives Treasury yields upward. The inflation rate saw its third consecutive decline in March, falling to its lowest in five months on the back of a stable Cedi and fuel & transport costs. This has however had minimal impact on the government’s fixed-income securities following the limited borrowing options available to the government at a time when the country awaits an IMF board-level approval for a USD 3.0 billion bailout from the international lender.

The 91-day bill rose this week to add 12 basis points (bps) to its recent gains as it further narrowed down its year-to-date depreciation to 43.83% from this year’s low of 47.60%. It cleared at 19.8635% this week from 19.7444% registered last week.

The 182-day bill recorded its fifth consecutive strengthening this week, edging up by 10 bps this week to add to last week’s 22 bps gain. It climbed from 22.4709% posted last week to clear at 22.5758% this week.

The 364-day bill came in as the star performer for the week, rising up by 36 bps to recover from last week’s 6 bps dip. It moved up from 26.9020% recorded last week to clear at 27.2615% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	19.7444%	19.8635%	0.12	0.60%	-43.83%
182 – Day	22.4709%	22.5758%	0.10	0.47%	-37.25%
364 – Day	26.9020%	27.2615%	0.36	1.34%	-24.05%

Auction results of tender 1847 indicated that the government achieved its intended target amount with bids coming in excess of 29.6% of the target amount as investors remain hopeful of the government securing an IMF deal in the first half of the year.

A total of GHS 2,537.98 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of 1,958.00 million. The government, however, accepted GHS 2,530.91 million worth of bids tendered for its short-term papers.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 1,585.00 million from 91-day and 182-day bills.