Treasury Rates [October 9, 2023]

Security	Interest Rates
91 – Day Bill	29.1947%
182 – Day Bill	31.2151%
364 – Day Bill	33.0152%

Ahead of this week’s announcement of consumer price data for September where the market is anticipating that the inflation rate will extend its calmer tone with a slight dip from the previous month’s inflation rate, Treasury bills rates continued their relentless upward journey buoyed by the government’s overreliance on the domestic market as the international market remains shut to the nation. Treasury yields have stayed on a consistent upward trajectory over the past six months despite renewed concerns of slowing inflation after the inflation rate saw a sudden sharp decline to its lowest in eleven months in August.

The 91-day bill came in as the star performer at last Friday’s auction with a jump of 40 basis points (bps) surpassing last week’s 29 bps increase. It cleared at 29.1947% this week, up from 28.7957% posted last week.

The yield on the 182-day bill similarly went up by a bigger margin this week at 30 bps compared to last week’s 24 bps jump. It moved up from 30.9168% posted last week to clear at 31.2151% this week.

The 364-day bill however went up by a smaller margin this week at 19 bps compared to last week’s 32 bps increase. It rose to 33.0152% this week from 32.8219% posted last week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	28.7957%	29.1947%	0.40%	1.39%	-17.44%
182 – Day	30.9168%	31.2151%	0.30%	0.96%	-13.24%
364 – Day	32.8219%	33.0152%	0.19%	0.59%	-8.02%

Auction results of tender 1871 revealed that after last week’s sluggish demand as investors remained cautious over the future path of the inflation outlook coupled with renewed concerns of mounting public debt, demand picked up steam this week with the government meeting its target. Bids came in access of 24.5% over the government’s target amount.

A total of GHS 2,626.30 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 2,109.00 million. The government accepted 99.3%, 94.1%, and 84.1% of the GHS 2,170.79 million, GHS 375.34 million, and GHS 80.17 million worth of bids tendered for the 91-day, 182-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 2,243.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.09 billion worth of maturing papers due next week.