Treasury Rates [March 11, 2024]

Security	Interest Rates
91 – Day Bill	26.7459%
182 – Day Bill	29.2486%
364 – Day Bill	29.8499%

Ahead of this week’s inflation announcement with the market bracing itself for yet another apparent upturn in the consumer price index on the back of difficulties facing the local currency coupled with the recent upticks in the prices of petroleum products at the pumps, Treasury yields extended their downward trend for the eleventh consecutive time this week. Despite the resurgence of upside risks to the inflation outlook, Treasury bill rates are expected to continue to tank as the government attempts to normalize its borrowing costs.

The yield on the 91-day bill fell by 25 basis points (bps) as it widened its year-to-date losses to 8.54%. It cleared at 26.7459% this week from 26.9988% cleared last week.

The yield on the 182-day bill replicated a similar margin of decline recorded last week as it fell by 25 bps this week. It moved down from 29.4965% registered last week to clear at 29.2486% this week.

The 364-day bill similarly edged down by 25 bps, steeper than last week’s 20 bps dip. It declined to 29.8499% this week, down from 30.0989% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	26.9988%	26.7459%	-0.25	-0.94%	-8.54%
182 – Day	29.4965%	29.2486%	-0.25	-0.84%	-8.26%
364 – Day	30.0989%	29.8499%	-0.25	-0.83%	-8.11%

Auction results of tender 1893 showed that investors remained unperturbed by the recent string of weaknesses in Treasury yields as they renewed their confidence in government short-term assets. Accordingly, the government achieved its targets with an oversubscription rate of 12.7%.

A total of GHS 4,830.77 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 4,285.00 million. The government accepted all GHS 2,721.72 million, GHS 919.40 million, and GHS 1,189.65 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 3,891 million from 91-day, 182-day, and 364-day bills to meet GHS 3.65 billion worth of maturing papers due next week.