Treasury Rates [August 14, 2023]

Security	Interest Rates
91 – Day Bill	26.0918%
182 – Day Bill	27.5975%
364 – Day Bill	30.6998%

Borrowing costs for the government’s short-term assets went up this week from levels seen last week as pressure mounts on the government to create buffers to meet the upcoming interest payment on the Domestic Debt Exchange Programme (DDEP) bonds due next week. The recent upward pressures on Treasury yields have also been exacerbated by expectations of higher inflation numbers with the latest inflation data released last week showing inflation reversing its disinflationary path.

The 91-day bill extended its recent record run for the twenty-first consecutive time this week with an impressive 52 basis points (bps) climb compared to last week’s 33 bps gain. It rose from 25.5723% posted last week to clear at 26.0918% this week.

The 182-day bill similarly rose from last week’s level with a 32 bps increase to trim its year-to-date declines to 23.30% from 24.17% last week. It cleared at 27.5975% this week, up from 27.2822% posted last week.

The yield on the 364-day bill went up by 21 bps this week, better than the 19 bps recorded last week. It moved up from 30.4913% posted last week to clear at 30.6998% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	25.5723%	26.0918%	0.52	2.03%	-26.22%
182 – Day	27.2822%	27.5975%	0.32	1.16%	-23.30%
364 – Day	30.4913%	30.6998%	0.21	0.68%	-14.47%

Auction results of tender 1863 revealed that demand picked up this week after July’s inflation data affirmed expectations of higher inflation numbers prompting investors to increase their portfolio in government holdings. The government consequently achieved an oversubscription rate of 15.4%.

A total of GHS 3,535.76 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 3,065.00 million. The government accepted all GHS 261.69 million worth of bids tendered for its 182-day bills and accepted 99.9% and 96.4% of the GHS 2,526.26 million and GHS 747.81 million worth of bids tendered for the 91 and 364 tenors respectively.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 3,966.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.45 billion maturing papers due next week as well as to create buffers for the upcoming interest payments on the DDEP bonds.