Treasury Rates [November 13, 2023]

Security	Interest Rates
91 – Day Bill	29.8420%
182 – Day Bill	31.8753%
364 – Day Bill	33.4468%

In a surprising turn of events, Treasury bill rates cleared lower this week after 34 weeks of staying on an upward trajectory. Treasury yields have stayed on an increasing trajectory in most parts of the year supported by high inflationary figures as the economy continued to remain volatile to price shocks. This week’s Treasury performance comes ahead of the presentation of the 2024 budget statement to parliament where the market will be on the lookout for the proposed budget deficit the government will be working with next year. Expectations of slowing down inflation numbers are anticipated to weigh on Treasury yields in the near term.

The yield on the 91-day bill declined by 13 basis points (bps) this week, erasing sections of last week’s 15 bps increase. It dipped to 29.8420% this week from 29.9680% posted last week.

The 182-day bill similarly cleared lower this week as it fell by 27 bps, failing to replicate last week’s strong 47 bps jump. It fell from 32.1489% posted last week to clear at 31.8753% this week.

After recording a 28 bps increase last week, the yield on the 364-day bill decreased by 25 bps this week to further widen its year-to-date decline to 6.82%. It cleared at 33.4468% this week from 33.7001% posted last week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	29.9680%	29.8420%	-0.13	-0.42%	-15.61%
182 – Day	32.1489%	31.8753%	-0.27	-0.85%	-11.41%
364 – Day	33.7001%	33.4468%	-0.25	-0.75%	-6.82%

Auction results of tender 1876 showed that investors continued to swamp the government’s short-term assets as inflation gradually takes a downturn. The government accordingly met its targets for the sixth time in a row after its target amount was oversubscribed to the tune of 29.0%.

A total of GHS 4,006.52 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 3,105.00 million. The government accepted 97.0%, 99.7%, and 98.4% of the GHS 3,241.63 million, GHS 410.99 million, & GHS 3353.90 million worth of the 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 3,266.00 million from 91-day, 182-day, and 364-day bills to meet GHS 3.71 billion worth of maturing papers due next week.