Treasury Rates [September 18, 2023]

Security	Interest Rates
91 – Day Bill	28.1201%
182 – Day Bill	29.3936%
364 – Day Bill	32.1700%

Treasury bill rates registered an uptick this week adding to its recent upward streak despite disappointing inflation numbers which suggested that the renewed inflationary pressures may be cooling off. The latest inflation numbers released by the Ghana Statistical Services revealed that a significant month-on-month drop in the general price levels of goods and services in August weighed heavily on the annual inflation number which declined to its lowest since September 2022. The September sitting of the Monetary Policy Committee of the central bank due later in the month will be expected to set the tone for the direction of future interest rates in the light of the fresh development in the consumer price index.

The 91-day bill rose by a lesser margin at 33 basis points (bps) increase this week compared to last week’s 43 bps gain. It hardened from 27.7868% posted last week to clear at 28.1201% this week.

The yield on the 182-day bill registered a 27 bps uptick to clear at 29.3936% this week from last week’s 29.1188% level.

The 364-day bill recorded its second consecutive slower growth this week with an increase of 20 bps compared to last week’s 31 bps increase. It cleared at 32.1700% this week from 31.9727% last week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	27.7868%	28.1201%	0.33	1.20%	-20.48%
182 – Day	29.1188%	29.3936%	0.27	0.94%	-18.30%
364 – Day	31.9727%	32.1700%	0.20	0.62%	-10.38%

Auction results of tender 1868 showed that for the first time in four weeks, the government failed to realize its target as investors began to digest the future trajectory of the inflationary path. The target amount was thus undersubscribed by 10.8%.

A total of GHS 3,350.64 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 3,759.00 million. The government accepted all GHS 2,601.27 million and GHS 496.95 million worth of bids tendered for its 91-day and 182-day bills and 98.4% of the GHS 252.42 million worth of bids tendered for its 364-day bill.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 2,585.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.41 billion maturing papers due next week.