Treasury Rates [December 4, 2023]

Security	Interest Rates
91 – Day Bill	29.5684%
182 – Day Bill	31.7638%
364 – Day Bill	33.4445%

Treasury bill rates came in mixed this week as the 91-day bill fell for the fourth time in a row while that on the 182-day and 364-day bills rose from the previous week’s level to trim some of its recent losses. This week’s Treasury performance comes after last week’s monetary policy rate decision where the committee stalled the policy rate for the second consecutive time at 30.0% on concerns that despite a deceleration in the headline inflation print over the past few months, the consumer price index remains relatively high which calls for the need to keep the policy rate tighter-for-longer.

The yield on the 91-day bill fell the most by 367 basis points (bps), its biggest weekly decline in nearly 40 weeks. It cleared at 29.5684% this week, down from 33.2349% posted last week.

The 182-day bill was little changed this week, failing to recover from last week’s 12 bps decline. It rose marginally from 31.7579% posted last week to clear at 31.7638% this week.

The 364-day bill gained by 21 bps compared to last week’s loss by a similar margin. It cleared at 33.4445% this week, up from 33.2349% posted last week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	33.2349%	29.5684%	-3.67	-11.03%	-16.39%
182 – Day	31.7579%	31.7638%	0.01	0.02%	-11.72%
364 – Day	33.2349%	33.4445%	0.21	0.63%	-6.83%

Auction results of tender 1879 revealed that for the first time in the past 9 weeks, the government failed to achieve its target amount as investors continue to remain skeptical about the economic outlook despite improving macroeconomic variables. The government’s target was undersubscribed by 30.3%.

A total of GHS 3,917.26 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of 5,618.00 million. As a result of the narrow demand, the government’s hands were tied, thus pushing the government to accept all GHS 1,339.85 million, GHS 722.99 million, and 1,854.42 million worth of bids tendered for 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 3,919.00 million from 91-day, 182-day, and 364-day bills to meet GHS 3.25 billion worth of maturing papers due next week.