Treasury Rates [April 29, 2024]

Security	Interest Rates
91 – Day Bill	25.5478%
182 – Day Bill	27.6457%
364 – Day Bill	28.2490%

The last Treasury auction for the month of April saw the yields on the government’s shorter-dated papers continue their downward trajectory despite expectations of upward inflation numbers as the Cedi continued to post losses against the Dollar coupled with upward adjustment in the prices of petroleum products. The fast pace of decline in Treasury yields is anticipated to slow down in the near future as inflationary pressures begin to bite.

The yield on the 91-day bill fell by 10 basis points (bps) this week, adding onto last week’s 9 bps loss. It cleared at 25.5478% this week, down from 25.6488% posted last week.

The 182-day bill fell by a similar margin of decrease posted last at 25 bps to widen its year-to-date losses to 13.29%. It moved down to 27.6457% from 27.8990% posted last week.

The 364-day bill similarly declined by 25 bps, wiping off at least 4.2% percentage points from its year opening figure. It fell from 28.4971% posted last week to clear at 28.2490% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	25.6488%	25.5478%	-0.10	-0.39%	-12.63%
182 – Day	27.8990%	27.6457%	-0.25	-0.91%	-13.29%
364 – Day	28.4971%	28.2490%	-0.25	-0.87%	-13.04%

Auction results of tender 1900 revealed that demand came in weaker than expected as the government struggles to reach its target in recent times following rising concerns over the health of the domestic economy. The government’s target was thus undersubscribed by 10.6%.

A total of GHS 3,110.79 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 3,478.00 million. The government accepted all GHS 1,983.43 million, GHS 878.6 million, and GHS 248.76 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 2,960.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.4 billion worth of maturing papers due next week.