Treasury Rates [September 11, 2023]

Security	Interest Rates
91 – Day Bill	27.7868%
182 – Day Bill	29.1188%
364 – Day Bill	31.9727%

Ahead of the announcement of the consumer price index later in the week where the market is anticipating a much calmer inflation reading after a steady pick-up in the consumer price index over the past three months, Treasury yields extended their upward trend, adding onto previous weeks’ gains. Treasury yields cleared higher this week, buoyed by the government’s continuous reliance on the domestic market to meet its impending liabilities.

The 91-day bill rose for the twenty-fifth consecutive time this week with an increase of 43 basis points (bps). It cleared at 27.7868% this week, up from 27.3614% posted last week.

The yield on the 182-day bill added 41 bps gain to its previous gains as it trimmed its year-to-date losses to 19.07% from 20.20% last week. It moved up from 28.7131% recorded last week to clear at 29.1188% this week.

The 364-day bill rose by a smaller margin this week at 31 bps compared to last week’s 42 bps gain. It hardened from 31.6582% posted last week to clear at 31.9727% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	27.3614%	27.7868%	0.43	1.55%	-21.42%
182 – Day	28.7131%	29.1188%	0.41	1.41%	-19.07%
364 – Day	31.6582%	31.9727%	0.31	0.99%	-10.93%

Auction results of tender 1867 revealed that for the third consecutive time, the government achieved its target as investors throng to the government’s shorter-dated papers to take advantage of the rising yields. Bids came in excess of 13.2% of the government’s target amount.

A total of GHS 2,944.71 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 2,601.00 million. The government accepted all GHS 415.78 million worth of bids tendered for its 364-day bill and 99.8% & 89.6% of GHS 2,206.37 million & GHS 322.56 million worth of bids tendered for its 91-day and 364-day bills respectively.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 3,759.00 million from 91-day, 182-day, and 364-day bills to meet GHS 3.51 billion maturing papers due next week.