Treasury Rates [April 22, 2024]

Security	Interest Rates
91 – Day Bill	25.6488%
182 – Day Bill	27.8990%
364 – Day Bill	28.4971%

Treasury bill rates resumed their free fall this week after posting a mixed result last week with the yield on the 91-day bill recording its first gain in 2024 while that on the 182-day and 364-day bills failed to post any comeback. Treasury bill rates have been on a persistent download decline in 2024 despite expectations of upward inflation numbers with the latest inflation print in March climbing to a four-year high. Treasury yields are expected to extend their downward trajectory in the near term, albeit at a much slower pace as emerging risks to the inflation outlook become more elaborate.

The 91-day bill declined by 9 basis points (bps) this week, failing to build on last week’s marginal gain. It fell from 25.7391% posted last week to clear at 25.6488% this week.

The yield on the 182-day bill fell by a bigger margin this week with a 25 bps dip, overshadowing the previous week’s 8 bps decline. It cleared at 27.8990% this week, down from 28.1481% posted last week.

The 365-day bill equally declined by 25 bps this week to build on last week’s 9 bps loss. It moved down from 28.7497% posted last week to clear at 28.4971% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	25.7391%	25.6488%	-0.09	-0.35%	-12.29%
182 – Day	28.1481%	27.8990%	-0.25	-0.88%	-12.50%
364 – Day	28.7497%	28.4971%	-0.25	-0.88%	-12.28%

Auction results of tender 1899 showed that the government narrowly missed its target after demand improved last week following weeks of sluggish demand. The government’s target amount was undersubscribed by nearly 1%.

A total of GHS 3,341.45 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 3,372.00 million. The government accepted all GHS 2,356.89 million, GHS 818.32 million, and GHS 166.24 million worth of bids tendered for the 91-day, 182-day, and 364-day bills respectively.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 3,478.0 million from 91-day, 182-day, and 364-day bills to meet GHS 3.27 billion worth of maturing papers due next week.