Treasury Rates [September 4, 2023]

Security	Interest Rates
91 – Day Bill	27.3614%
182 – Day Bill	28.7131%
364 – Day Bill	31.6582%

After a successful completion of the second round of the Domestic Debt Exchange Programme (DDEP) where the government is aiming to restructure its domestic debt stock, Treasury yields extended its relentless upward trajectory as the government continues to rely on shorter-dated papers to meet maturing debt obligations. The government announced last week that its second round of DDEP achieved 95% and 92% participation rates for its Alternative offer to pension funds and US dollar-denominated bond exchanges respectively. The government believes this will further expedite Ghana’s economic recovery.

The yield on the 91-day bill hardened by 34 basis points (bps) this week to build on last week’s 32 bps gain. It cleared at 27.3614% this week, after climbing up from 27.0231% posted last week.

After posting a significant increase last week, the yield on the 182-day bill moderated this week with a gain of 10 bps failing to replicate last week’s 74 bps climb. It moved up from 28.6174% posted last week to clear at 28.7131% this week.

The 364-day bill went up by a higher margin this week with a jump of 42 bps compared to last week’s 16 bps increase. It rose from 31.2404% last week to clear at 31.6582% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	27.0231%	27.3614%	0.34	1.25%	-22.63%
182 – Day	28.6174%	28.7131%	0.10	0.33%	-20.20%
364 – Day	31.2404%	31.6582%	0.42	1.34%	-11.80%

Auction results of tender 1866 showed that demand came in strong this week as the government continued to entice investors with higher yields on its short-term papers. Consequently, the government achieved an oversubscription rate of 15.1%.

A total of GHS 3,526.83 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 3,064.00 million. The government accepted all bids tendered across the tenors.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 2,601.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.43 billion maturing papers due next week.