Treasury Rates [December 25, 2023]

Security	Interest Rates
91 – Day Bill	29.3585%
182 – Day Bill	31.9467%
364 – Day Bill	32.4923%

Treasury bill rates strengthened this week, recouping sections of losses recorded last week. Treasury rates have mostly trended higher in most of part of 2023 as the economy struggled to post a recovery amidst a delayed IMF-assisted programme. However, rates fell drastically in the first quarter of the year after the government sent a clear signal of its intention to slash rates. Consequently, yields ended the year with year-to-date losses of 16.98%, 11.21%, and 9.48% for the 91-day, 182-day, and 364-day bills.

The yield on the 91-day bill picked up 31 basis points (bps) to recover part of last week’s 53 bps decline. It moved up from 29.0494% posted last week to clear at 29.3585% this week.

The 182-day bill similarly strengthened this week, up by 81 bps to pare some of last week’s 83 bps dip. It rose from 31.1373% posted last week to clear at 31.9467% this week.

The 364-day bill was little changed this week as it strengthened marginally to 32.4923%, up from 32.4921% recorded last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	29.0494%	29.3585%	0.31	1.06%	-16.98%
182 – Day	31.1373%	31.9467%	0.81	2.60%	-11.21%
364 – Day	32.4921%	32.4923%	0.00	0.00%	-9.48%

Auction results of tender 1882 showed that investors increased their exposure to the government’s shorter-dated assets as the economy began to show some resilience. Consequently, the government’s target amount was oversubscribed by 37.8%, better than last week’s 18.6%.

A total of GHS 3,575.40 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 2,594.00 million. The government accepted all GHS 669.98 million worth of bids tendered for its 364-day bills and accepted 99.9% and 99.4% out of the GHS 2,155.29 million and GHS 750.13 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 4,075.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.4 billion worth of maturing papers due next week.