Treasury Rates [October 30, 2023]

Security	Interest Rates
91 – Day Bill	29.8187%
182 – Day Bill	31.6777%
364 – Day Bill	33.4227%

Treasury bills rates cleared higher this week, extending its upward trajectory into the eighth month with yields steadily inching closer to 2023-year highs observed earlier in the year. The yields on the government’s short-term papers continue to see a steady rise despite a slowdown in the consumer price index with the inflation rate calming down by over 1500 basis points (bps) through the nine months of the year. The government’s seeming dependence on the domestic market to fund its budget implementation and to retire maturing debt obligations has been a key driver of the high yields on short-term government securities.

The yield on the 91-day bill went up marginally by 9 bps compared to last’s big move with a 25 bps increase. It cleared at 29.8187% this week, up from 29.7305% recorded last week.

The 182-day bill similarly saw a minimal increase as it rose by 8 bps this week, failing to replicate last week’s 18 bps increase. It moved up from 31.6014% posted last week to clear at 31.6777% this week.

The 364-day bill continued to close in, to par with its 2023-year high with an increase of 8 bps this week to trim its year-to-date dip to 6.89%. It rose from last week’s level at 33.3410% to clear at 33.4227% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	29.7305%	29.8187%	0.09	0.30%	-15.68%
182 – Day	31.6014%	31.6777%	0.08	0.24%	-11.96%
364 – Day	33.3410%	33.4227%	0.08	0.25%	-6.89%

Auction results of tender 1874 showed that the government met its target for the fourth time in a row as investors continued to throng to increase their exposures to the relatively higher rewarding government papers. Consequently, the government’s target was oversubscribed by 15.5%, falling short of last week’s 35.0% oversubscription rate.

A total of GHS 2,585.57 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 2,238.00 million. The government accepted all GHS 537.9 million worth of bids tendered for its 182-day bill and accepted 99.0% & 81.1% of the GHS 1,740.78 million & GHS 306.89 million worth of bids tendered for the 91-day & 364-day bills respectively.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 2,152.00 million from 91-day, 182-day, and 364-day bills to meet GHS 1.96 billion worth of maturing papers due next week.