Treasury Rates [April 15, 2024]

Security	Interest Rates
91 – Day Bill	25.7391%
182 – Day Bill	28.1481%
364 – Day Bill	28.7497%

Treasury bill rates were mixed at last Friday’s auction, the first of such occurrence this year as the 91-day bill recorded its first gain since late December last year. This week’s Treasury performance comes after the latest inflation print revealed that the consumer price index inched up in March from the level observed in February with the inflation rate gradually taking an upward turn. Expectations of upward inflation numbers supported by renewed risks to the inflation outlook as the Cedi continues to struggle against some of its major trading partner currencies coupled with the hikes in petroleum products are anticipated to have minimal effect on the downward trajectory of Treasury yields.

The yield on the 91-day bill climbed up by a basis point this week to recover a part of last week’s loss. It moved up from 25.7321% posted last week to clear at 25.7391% this week.

The 182-day continued its free fall as it plunged by 8 basis points (bps) this week, adding onto last week’s 2 bps loss. It cleared at 28.1481% this week, down from 28.2267% posted last week.

The 364-day bill after coming in with a marginal decline this week, failed to hold firm as it slumped by 9 bps to clear at 28.7497% this week from 28.8378% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	25.7321%	25.7391%	0.01	0.03%	-11.98%
182 – Day	28.2267%	28.1481%	-0.08	-0.28%	-11.71%
364 – Day	28.8378%	28.7497%	-0.09	-0.31%	-11.50%

Auction results of tender 1898 revealed that after weeks of sluggish demand for the government’s short-term assets, demand improved this week as investor confidence received a boost following the successful completion of the second review of Ghana’s programme with the IMF. Consequently, the government’s target amount was oversubscribed by 22.3%.

A total of GHS 4,228.87 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 3,459.00 million. The government accepted all GHS 3,606.04 million and GHS 117.64 million worth of bids tendered for the 91-day and 364-day bills and accepted 99.9% of the GHS 505.19 million worth of bids tendered for its 182-day bill.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 3,372 million from 91-day, 182-day, and 364-day bills to meet GHS 3.17 billion worth of maturing papers due next week.