Treasury Rates [May 6, 2024]

Security	Interest Rates
91 – Day Bill	25.4481%
182 – Day Bill	27.3974%
364 – Day Bill	27.9998%

Ahead of the announcement of the consumer price index for April where the market is bracing itself up for another increase in the inflation rate as the Cedi continues to face a major headwind coupled with increases in the prices of petroleum products, Treasury bill rates continued their free fall in line with moves by the government to drive down its interest cost burdens as it forges to continue its debt restructuring. The ongoing inflationary pressures are, however, expected to slow down the fast pace of the decline in Treasury yields following a series of under-subscriptions by investors towards the government’s short-term assets.

The yield on the 91-day bill maintained its modest decline this week as it fell by 10 basis points (bps). It cleared at 25.4481% this week, down from 25.5478% posted last week.

The 182-day bill repeated last week’s performance where it dipped by 25 bps. It moved down from 27.6457% posted last week to clear at 27.3974% this week.

The 364-day bill fell by 25 bps this week to widen its year-to-date losses to 13.81% from 13.04% last week. It cleared at 27.9998% this week from 28.2490% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	25.5478%	25.4481%	-0.10	-0.39%	-12.97%
182 – Day	27.6457%	27.3974%	-0.25	-0.90%	-14.07%
364 – Day	28.2490%	27.9998%	-0.25	-0.88%	-13.81%

Auction results of tender 1901 showed that investors rekindled their strong demand for the government’s short-term assets after a series of sluggish demands as they began to examine the upcoming inflation release for how far inflation is likely to jump. The government thus achieved an oversubscription rate of 17.1%.

A total of GHS 3,465.27 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 2,960.00 million. The government accepted all GHS 2,010.11 million, GHS 1,139.96 million, and GHS 315.20 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 3,677.00 million from 91-day, 182-day, and 364-day bills to meet GHS 3.46 billion worth of maturing papers due next week.