Treasury Rates [June 10, 2024]

Security	Interest Rates
91 – Day Bill	25.0386%
182 – Day Bill	26.9397%
364 – Day Bill	27.9299%

Last Friday’s auction was climaxed with an interesting turn of events as Treasury yields posted their first-ever simultaneous increase yet in 2024 as price pressures gathered momentum fueled the sustained and sharp depreciation of the local currency against its major international trading partner currencies amidst a surge in the prices of food items and staples. This week’s Treasury performance comes ahead of the announcement of consumer price data for May where the market will be expecting to see inflation trending above 20.0%.

The 91-day bill was little changed this week as it posted a marginal increase from last week’s 6 basis points (bps) drop. It moved from 25.0385% posted last week to clear at 25.0386% this week.

The 182-day drew much closer to recovering its 3 bps loss last week as it came up with a 2 bps increase this week. It cleared at 26.9397% this week, up from 26.9173% posted last week.

The yield on the 364-day bill inched up by 2 this week to recover sections of the previous week’s 4 bps dip. It rose from 27.9093% last week to clear at 27.9299% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	25.0385%	25.0386%	0.00	0.00%	-14.37%
182 – Day	26.9173%	26.9397%	0.02	0.08%	-15.50%
364 – Day	27.9093%	27.9299%	0.02	0.07%	-14.02%

Auction results of tender 1906 revealed that demand picked up steam this week as expectations of high inflation numbers drive hopes up of a reversal of the downward trend in yields. Consequently, the government’s target amount was oversubscribed by 19.47%.

A total of GHS 5,256.69 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 4,400.00 million. The government accepted all GHS 3,399.82 million, GHS 1,689.82 million, and GHS 167.05 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 4,900.00 million from 91-day, 182-day, and 364-day bills to meet GHS 4.61 billion worth of maturing papers due next week.