Security | Interest Rates |
91 – Day Bill | 29.1902% |
182 – Day Bill | 31.7437% |
364 – Day Bill | 32.3404% |
Ahead of the announcement of year-end inflation numbers for 2023 where the market is bracing up for yet another dip in the consumer price index, Treasury bill rates slowed on the back of the recent slowdown in the general price levels. Inflation has seen a persistent decline over the past four months beginning in August with the rate of inflation posting a huge decline from a 2023-year high at 53.6% in January to 26.4% in November, the lowest in nearly two years. This significant halving in the annual national inflation figure has inadvertently forced a decline in Treasury rates.
The 91-day bill recorded a decline to the magnitude of 5 basis points (bps) dip, better than last week’s 12 bps. It slowed down from 29.2419% posted last week to clear at 29.1902% this week.
The yield on the 182-day bill declined by a bigger margin this at 14 bps compared to last week’s 6 bps dip. It fell to 31.7437% this week from 31.8830% recorded last week.
The yield on the 364-day bill similarly saw a bigger margin of decline this week at 15 bps compared to last week’s marginal loss. It fell from 32.4859% recorded last week to 32.3404% this week.
Week-on-Week Change
Tenor | Previous | Current | w-o-w Change | w-o-w Change (%) | Year-to-Date |
91 – Day | 29.2419% | 29.1902% | -0.05 | -0.18% | -0.18% |
182 – Day | 31.8830% | 31.7437% | -0.14 | -0.44% | -0.44% |
364 – Day | 32.4859% | 32.3404% | -0.15 | -0.45% | -0.45% |
Auction results of tender 1884 revealed that despite the drop in rates, investors increased their exposures to the government’s assets as the recent string of economic data showed the Ghanaian economy gradually picking up momentum. The government’s target amount was subsequently oversubscribed by 13.6%.
A total of GHS 3,223.73 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 2,837.00 million. The government accepted all GHS 2,143.78 million and GHS 595.72 million worth of bids tendered for its 91-day and 182-day bills and accepted 99.0% out of the GHS 484.22 million worth of bids tendered for the 364-day bill.
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.