Treasury Rates [August 28, 2023]

Security	Interest Rates
91 – Day Bill	27.0231%
182 – Day Bill	28.6174%
364 – Day Bill	31.2404%

Treasury bills rates cleared higher this week from the previous week’s levels buoyed by the government’s continuous reliance on the domestic market in raising funds to supplement the national budget as well as to meet impending debt obligations. Last week, the government honoured the first interest payments totaling GHS 2.4 billion on the bonds under the Domestic Debt Exchange Programme (DDEP) where funds raised from the domestic Treasury market played an essential role in shoring up the funds earmarked for the interest payments.

The 91-day bill climbed up for the twenty-third consecutive time with an increase of 32 basis points (bps), falling short of last week’s 62 bps jump. It cleared at 27.0231% this week from 26.7073% posted last week.

The 182-day bill came in as the star performer this week with a jump of 74 bps, its strongest gain over the past ten weeks. It cleared at 28.6174% this week, up from 27.8807% posted last week.

The yield on the 364-day bill failed to match up to last week’s performance as it climbed up by 16 bps this week against last week’s 38 bps gain. It moved up from 31.0828% posted last week to 31.2404% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	26.7073%	27.0231%	0.32	1.18%	-23.58%
182 – Day	27.8807%	28.6174%	0.74	2.64%	-20.46%
364 – Day	31.0828%	31.2404%	0.16	0.51%	-12.97%

Auction results of tender 1865 revealed that demand gained traction this week as investor confidence creeps in following the government’s ability to honour the coupon payments on the DDEP bonds. Accordingly, the government achieved an oversubscription rate of 5.6%.

A total of GHS 3,225.07 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 3,053.00 million. The government accepted all GHS 2,361.36 million worth of bids tendered for the 91 tenor, and 97.8% & 97.9% of the GHS 717.51 million & GHS 146.2 million worth of bids tendered for the 182 and 364 tenors respectively.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 3,064.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.87 billion maturing papers due next week.