Treasury Rates [March 25, 2024]

Security	Interest Rates
91 – Day Bill	25.9988%
182 – Day Bill	28.4961%
364 – Day Bill	29.0996%

Ahead of the announcement of the policy rate where analysts are predicting a monetary policy rate stay on the back of calls for a more cautious approach to the seeming easing of pressures on consumer prices, Treasury bill rates fell by a bigger margin this week compared to levels of declines observed over the past two weeks. The yields on the government’s short-term assets have been on a persistent downward trajectory in the first three months of the year despite the prevalence of upward price pressures on consumer goods. Moves in Treasury papers in recent times have been supported by conscious efforts by the government to cut down its borrowing costs as it seeks to steer the economy back on track.

The yield on the 91-day bill added 50 basis points (bps) to its recent string of declining performances this week. It moved down to 25.9988% this week from 26.4986% posted last week.

The 182-day bill similarly fell by 50 bps this week to build on last week’s 25 bps dip. It fell from 28.9980% posted last week to clear at 28.4961% this week.

The 364-day bill suffered its thirteenth consecutive decline this week with a 50 bps loss. It cleared at 29.0996% this week, down from 29.5995% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	26.4986%	25.9988%	-0.50	-1.89%	-11.09%
182 – Day	28.9980%	28.4961%	-0.50	-1.73%	-10.62%
364 – Day	29.5995%	29.0996%	-0.50	-1.69%	-10.42%

Auction results of tender 1895 showed yet another strong interest in the government’s short-term assets as real returns continued to remain favourable. Accordingly, total bids tendered came in excess of 40.0% over the government’s target amount.

A total of GHS 4,775.39 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 3,383.00 million. The government accepted all GHS 1,343.49 million and GHS 927.06 million worth of bids tendered for the 182-day and 364-day bills and accepted 99.25% out of the GHS 2,504.84 million worth of bids tendered for the 91-day bill.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 4,161.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.63 billion worth of maturing papers due next week.