Treasury Rates [January 1, 2024]

Security	Interest Rates
91 – Day Bill	29.2419%
182 – Day Bill	31.8830%
364 – Day Bill	32.4859%

Treasury bill rates began the New Year on a declining trajectory supported by a seeming easing of pressures on the consumer price index and as some macroeconomic variables begin to point in the right direction. The yields on the government’s shorter dated papers trended at record highs in most parts of last year in the absence of long-term issuances. However, a conscious decision by the government to slash down rates kept rates in check with the yields on the bills ending the year with year-to-date declines of 16.98%, 11.21%, and 9.48% across the short-term tenors.

The 91-day bill fell by 12 basis points this week to erase sections of last week’s 31 bps increase. It cleared at 29.2419% this week, down from 29.3585% recorded last week.

The yield on the 182-day after an impressive 81 bps jump last week, suffered a blow this week as it fell by 6 bps. It moved down from 31.9467% last week to clear at 31.8830% this week.

The yield on the 364-day remained sticky , coming with a marginal decline of 1 bps this week after it staying unchanged last week. It dipped to 32.4859% this week from 32.4923% last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	29.3585%	29.2419%	-0.12	-0.40%	0.00%
182 – Day	31.9467%	31.8830%	-0.06	-0.20%	0.00%
364 – Day	32.4923%	32.4859%	-0.01	-0.02%	0.00%

Auction results of tender 1883 revealed that investors remained their confidence in government securities on optimism that the economy will remain resilient this year. Accordingly, the government achieved an oversubscription of its papers with an oversubscription rate of a little above 3.0%.

A total of GHS 4,212.09 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 4,075.00 million. The government accepted all GHS 1,646.47 million worth of bids tendered for its 364-day bills and accepted 99.9% and 99.6% out of the GHS 2,147.82 million and GHS 417.80 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 2,837.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.45 billion worth of maturing papers due next week.