Treasury Rates [June 12, 2023]

Security	Interest Rates
91 – Day Bill	21.2694%
182 – Day Bill	23.9535%
364 – Day Bill	27.8200%

Ahead of the announcement of consumer prices data for May 2023, Treasury rates came in mixed as the yields on the 91-day and the 182-day bills extended their impressive run for the twelfth consecutive time whilst that on the 364-day bill recorded its first dip since mid-April. The market is anticipating a further drop in the inflation reading on the back of base drift effects and as the local currency continues to see some stability. It is however expected that the inflation rate will remain elevated to hover over the 30.0% ± 10.0% range following the coming on board of the upward review in utility tariffs and as new tax policies and enforcement kicks in. Treasury yields are expected to continue to climb up albeit at a much slower pace on the back of expectations of slowing down inflation numbers.

Although the 91-day bill cleared higher this week, it climbed up by only a smaller margin compared to last week’s 36 basis points (bps) increase. It moved up by 11 bps this week to clear at 21.2694% from 21.1578% posted last week.

The yield on the 182-day bill was little changed this week, edging up 2 bps this week, slower than last week’s 32 bps jump. It rose from 23.9381% last week to clear at 23.9535% this week.

The yield on the 364-day bill slowed down by 20 bps to erase sections of its previous 43 bps gain. It cleared at 27.8200% this week, down from 28.0171% posted last week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	21.1578%	21.2694%	0.11	0.53%	-39.85%
182 – Day	23.9381%	23.9535%	0.02	0.06%	-33.42%
364 – Day	28.0171%	27.8200%	-0.20	-0.70%	-22.49%

Auction results of tender 1854 showed that demand picked up steam this week to beat the government’s target amount for the second consecutive time. Bids tendered for the government’s short-term papers came in excess of 6.5% of the target amount.

A total of GHS 2,801.02 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 2,631.00 million. The government accepted all bids tendered.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 3,790.00 million from 91-day, 182-day, and 364-day bills.