Treasury Rates [May 22, 2023]

Security	Interest Rates
91 – Day Bill	20.5623%
182 – Day Bill	23.3553%

After Ghana officially secured a 3-year International Monetary Fund (IMF) bailout package with an immediate disbursement of the first tranche of support totaling USD 600.0 million, Treasury yields on the government’s short-dated papers extended their upward trajectory amidst a gradual slowdown in the rate of increases in the general price levels of goods and services.

This week’s Treasury performance also comes ahead of the announcement of monetary policy directions where some analysts are forecasting a marginal tightening of the policy rate in consonance with recommendations by the IMF for Ghana’s central bank to keep hiking rates to keep prices stable. Rates on the government’s short-term securities are expected to extend its increase after the Finance Minister said that the government was not in a hurry to seek funding from the Eurobond market.

The rate of increase in the yield on the 91-day bill slowed down for the fourth consecutive time this week as it rose by 13 basis points (bps) compared to last week’s 17 bps increase. It cleared at 20.5623% this week, up from 20.4309% posted last week.

The 182-day bill recorded its ninth consecutive increase this week as it rose by 39 bps to further lower its year-to-date declines to 35.09% from 36.18% last week. It moved up from 22.9615% posted last week to clear at 23.3553% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	20.4309%	20.5623%	0.13	0.64%	-41.85%
182 – Day	22.9615%	23.3553%	0.39	1.72%	-35.09%

Auction results of tender 1851 showed that the government narrowly missed its intended target as the government continue to increase its domestic borrowings to meet overdue matured debt obligations. Total subscriptions amounted to 99.85% of the target amount.

A total of GHS 2,728.02 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of GHS 2,732.00 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 3,431.00 million from 91-day, 182-day, and 364-day bills.