Treasury Rates [April 8, 2024]

Security	Interest Rates
91 – Day Bill	25.7321%
182 – Day Bill	28.2267%
364 – Day Bill	28.8378%

After last week’s unexpected slump in the demand for Treasury bills, the yields on the government’s short-term papers extended their downward trajectory this week, albeit at a much slower pace compared to the previous weeks’ margins of decrease. This week’s Treasury bills performance comes ahead of the announcement of the consumer price index for March where it is expected that the Cedi’s struggles in the month will further slow the disinflationary process. It is expected that the sharp decline in Treasury yields will be moderated in the near term as inflationary pressures become more pronounced.

The yield on the 91-day bill weakened by 2 basis points (bps) this week, its lowest decline in recent times. It cleared at 25.7321% this week from 25.7493% posted last week.

The 182-day bill similarly fell by 2 bps, adding onto last week’s 25 bps dip. It moved down from 28.2481% last week to clear at 28.2267% this week.

The 364-day bill recorded the slowest pace of decline this week with a dip of a basis point drop. It softened from last week’s level of 28.8495% to clear at 28.8378% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	25.7493%	25.7321%	-0.02	-0.07%	-12.00%
182 – Day	28.2481%	28.2267%	-0.02	-0.08%	-11.47%
364 – Day	28.8495%	28.8378%	-0.01	-0.04%	-11.23%

Auction results of tender 1897 showed that demand failed to meet the government’s target amount as investors reassessed the macroeconomic environment following the emergence of some level of weaknesses in the domestic economy. Consequently, the government’s target was undersubscribed by 8.8%.

A total of GHS 2,560.70 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 2,808.00 million. The government accepted all GHS 2,023.03 million, GHS 417.58 million, and GHS 120.09 million worth of bids tendered for the 91-day, 182-day, and 364-day bills.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 3,459.00 million from 91-day, 182-day, and 364-day bills to meet GHS 3.25 billion worth of maturing papers due next week.