Treasury Rates [February 26, 2024]

Security	Interest Rates
91 – Day Bill	27.2829%
182 – Day Bill	29.7487%
364 – Day Bill	30.2996%

Treasury bill rates ended the month on a declining trajectory as the ongoing downward pressures on Treasury yields continued unabated supported by expectations of slowing down inflation numbers coupled with the government’s posture of attempting to reduce its interest cost burdens. Consequently, an unexpected upward shift in the first inflation print for the year had minimal bearing on the downward trend of the yields on the government’s short-term securities. Yields are expected to continue this path into the near term in so far as there is no abrupt and sharp change in the disinflationary path.

The yield on the 91-day bill fell by 61 basis points (bps) this week, adding onto last week’s 10 bps dip. It lowered to 27.2829% this week, down from 27.8933% recorded last week.

The 182-day bill fell by the most by 65 bps, overshadowing last week’s marginal dip of 4 bps decrease. It moved down from 30.3946% posted last week to 29.7487% this week.

The 364-day bill added 60 bps loss to its recent string of losses, further widening its year-to-date losses to 6.73%. It cleared at 30.2996% this week, down from 30.8988% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	27.8933%	27.2829%	-0.61	-2.19%	-6.70%
182 – Day	30.3946%	29.7487%	-0.65	-2.13%	-6.69%
364 – Day	30.8988%	30.2996%	-0.60	-1.94%	-6.73%

Auction results of tender 1891 showed that despite experts warning of the government’s overreliance on short-term debts to finance capital expenditures, investors remained unperturbed towards the Treasury papers as they once again swarmed the government’s assets with an oversubscription rate of 11.2%.

A total of GHS 6,970.08 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 6,268.00 million. The government accepted all GHS 3,411.30 million, GHS 1,813.01 million, and GHS 1,745.77 million worth of bids tendered for its 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 4,137.00 million from 91-day, 182-day, and 364-day bills to meet GHS 3.87 billion worth of maturing papers due next week.