Treasury Rates [May 27, 2024]

Security	Interest Rates
91 – Day Bill	25.0992%
182 – Day Bill	26.9496%
364 – Day Bill	27.9498%

Treasury bill rates remained relatively stable at last Friday’s auctions ahead of the announcement of the monetary policy rate where the market will be on the lookout for the direction and tone of the central bank’s monetary policy committee in the face of the escalation of inflationary pressures exacerbated by the free fall of the local unit against most of its international major trading partner currencies. Yields on the government’s short-term papers are expected to continue to post marginal changes on the back of the emergence of risks to the inflation outlook fueled by rising prices of food items and petroleum products.

The 91-day bill moved slightly up after sustaining a 10 basis points (bps) dip last week. It moved up from 25.0986% posted last week to clear at 25.0992% this week.

The yield on the 182-day was little changed this week after recording a modest loss last week at 5 bps dip. It cleared at 26.9496% this week from 26.9497% posted last week.

The 364-day bill, similarly, came up with a modest move after recording a 5 bps loss last week. It fell from 27.9500% posted last week to clear at 27.9498% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	25.0986%	25.0992%	0.00	0.00%	-14.17%
182 – Day	26.9497%	26.9496%	0.00	0.00%	-15.47%
364 – Day	27.9500%	27.9498%	0.00	0.00%	-13.96%

Auction results of tender 1904 revealed that after weeks of investor optimism, demand was sluggish this week as investors sat on the fence to reassess the current economic environment as currency fluctuations pose a worry. The government’s target amount was thus undersubscribed by 15.41%.

A total of GHS 4,115.28 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 4,865.00 million. The government accepted all GHS 3,051.13 million, GHS 795.00 million, and GHS 269.15 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 2,718.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.56 billion worth of maturing papers due next week.