Treasury Rates [February 5, 2024]

Security	Interest Rates
91 – Day Bill	28.2982%
182 – Day Bill	30.7936%
364 – Day Bill	31.3995%

Treasury bill rates fell for the sixth consecutive time in recent times as the ongoing disinflationary path mounts downward pressure on the yields on the government’s short-term financial assets. Treasury rates have accordingly declined to their lowest in more than four months in line with the efforts by the government to drive down its interest costs as part of the demands of the International Monetary Fund’s Extended Credit Facility programme. Expectations of slowing down inflation numbers are anticipated to keep the downward pressure on yields into the medium term.

The yield on the 91-day bill fell by a similar margin as seen last week, coming in with a dip of 29 basis points (bps). It lowered to 28.2982% this week, down from 28.5913% posted last week.

The 182-day bill similarly went down by 30 bps to build on last week’s 30 bps loss. It moved down from 31.0981% posted last week to clear at 30.7936% this week.

The 364-day bill fell the most, coming in with a decline of 40 bps, worse than the 20 bps dip recorded last week. It cleared at 31.3995% this week, down from 31.7976% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	28.5913%	28.2982%	-0.29	-1.03%	-3.23%
182 – Day	31.0981%	30.7936%	-0.30	-0.98%	-3.42%
364 – Day	31.7976%	31.3995%	-0.40	-1.25%	-3.34%

Auction results of tender 1888 revealed that investors increased their exposures to the government’s assets as they sought to lock-in their funds before yields dip any further. Accordingly, the government’s target amount was oversubscribed by 62.2%.

A total of GHS 4,527.87 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 2,861.00 million. The government accepted all GHS 1,914.09 million, GHS 1,211.43 million, and GHS 1,402.35 million worth of bids tendered for its 91-day, 182-day, and 364-day bills.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 4,587.00 million from 91-day, 182-day, and 364-day bills to meet GHS 4.28 billion worth of maturing papers due next week.