Treasury Rates [October 16, 2023]

Security	Interest Rates
91 – Day Bill	29.4828%
182 – Day Bill	31.4259%
364 – Day Bill	33.2142%

Expectations of slowing down inflation numbers buoyed by a reduction in the prices of petroleum products at the pumps amid a relatively stable currency environment failed to tame the steady and persistent strengthening of Treasury yields as investors continue to take advantage of the government’s sole reliance on the domestic money market to bid higher yields for the government assets. Accordingly, the yields on short-term Treasury assets ticked higher this week from the previous week’s level.

The yield on the 91-day bill nudged up by 29 basis points (bps) to clear at 29.4828% this week, up from 29.1947% registered last week.

The 182-day bill recorded its thirtieth consecutive weekly gain this week with a climb of 21 bps. It moved up from 31.2151% posted last week to clear at 31.4259% this week.

The 364-day bill performed better this week with a jump of 20 bps compared to last week’s 19 bps increase. It rose to 33.2142% this week from last week’s 33.0152% mark.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	29.1947%	29.4828%	0.29	0.99%	-16.63%
182 – Day	31.2151%	31.4259%	0.21	0.68%	-12.66%
364 – Day	33.0152%	33.2142%	0.20	0.60%	-7.47%

Auction results of tender 1872 indicated that investors ignored fears of rising public debt as they thronged to the government’s short-term papers. Bids this week outperformed last week’s 24.5% oversubscription as the government’s target amount was oversubscribed by 25.0% this week.

A total of GHS 2,803.96 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 2,243.00 million. The government accepted all GHS 183.66 million worth of bids tendered for its 364-day bill and 91.6% & 99.9% of the GHS 2,296.21 million & GHS 324.09 million worth of bids tendered for the 91-day and 182-day bills.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 2,282.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.12 billion worth of maturing papers due next week.