Treasury Rates [March 18, 2024]

Security	Interest Rates
91 – Day Bill	26.4986%
182 – Day Bill	28.9980%
364 – Day Bill	29.5995%

Treasury bill rates continued their downward trend for the twelfth consecutive time this week supported by February’s inflation print which came in softer than the market’s anticipation as the Cedi’s recent troubles had minimal bearing on inflation on imported items. Consumer prices data released last week revealed that the inflation rate fell back to last year’s closing figure of 23.2% after briefly rising to 23.5% in January. Expectations of upward inflation numbers on the back of lingering risks to the inflation outlook are not expected to cause any major shift to the downward trajectory of Treasury yields in the near term.

The 91-day bill fell by 25 basis points (bps) this week, repeating last week’s performance. It lowered down from 26.7459% posted last week to clear at 26.4986% this week.

The 182-day bill similarly declined by 25 bps to widen its year-to-date decline to 9.05%. It cleared at 28.9980% this week, down from 29.2486% posted last week.

The yield on the 364-day bill dipped by 25 bps from 29.8499% posted last week to clear at 29.5995% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	26.7459%	26.4986%	-0.25	-0.92%	-9.38%
182 – Day	29.2486%	28.9980%	-0.25	-0.86%	-9.05%
364 – Day	29.8499%	29.5995%	-0.25	-0.84%	-8.89%

Auction results of tender 1894 revealed continuous strong interest in the government’s short-term assets as real returns remained positive. The government’s target amount was accordingly oversubscribed with an oversubscription rate of 38.3%.

A total of GHS 5,381.79 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 3,891.00 million. The government accepted all GHS 3,728.78 million and GHS 574.31 million worth of bids tendered for the 91-day and 364-day bills and also accepted GHS 1,067.46 million out of the GHS 1,078.70 million worth of bids tendered for the 182-day bill.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 3,383.00 million from 91-day, 182-day, and 364-day bills to meet GHS 3.17 billion worth of maturing papers due next week.