Treasury Rates [November 6, 2023]

Security	Interest Rates
91 – Day Bill	29.9688%
182 – Day Bill	32.1489%
364 – Day Bill	33.7001%

Treasury bills rates continued their upward trajectory ahead of next week’s announcement of the inflation rate which is expected to show a sustained easing of the upward price pressures on consumer goods and services as prices of petroleum products continue to remain relatively stable. The inflation outlook, however, faces a major headwind as pressures on the local currency begin to bite following a resurgence of demand pressures for forex by importers and businesses ahead of the festive season amidst a limited supply of forex.

The 91-day bill picked momentum this week to record a much bigger margin of increase at 15 basis points (bps) increase compared to last week’s 9 bps increase. It rose to 29.9680% this week from 29.8187% posted last week.

The 182-day bill came in as the star performer for the week, with a 47 bps increase compared to last week’s 8 bps increase. It rose from 31.6777% posted last week to clear at 32.1489% this week.

The yield on the 364-day bill climbed up by 28 bps this week to further trim its year-to-date dip to -6.11% from -6.89% last week. It cleared at 33.7001% this week from 33.4227% posted last week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	29.8187%	29.9680%	0.15	0.50%	-15.26%
182 – Day	31.6777%	32.1489%	0.47	1.49%	-10.65%
364 – Day	33.4227%	33.7001%	0.28	0.83%	-6.11%

Auction results of tender 1875 revealed that investors continued to throng on the government’s short-term assets as real returns began to improve. The government met its target for the fifth consecutive time this week, with its target being oversubscribed by 33.0% this week.

A total of GHS 2,862.54 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 2,152.00 million. The government accepted 99.3%, 84.9%, and 75.1% of the GHS 2,033.84 million, GHS 517.49 million, & GHS 311.21 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 3,105.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.89 billion worth of maturing papers due next week.