Treasury Rates [June 24, 2024]

Security	Interest Rates
91 – Day Bill	24.8675%
182 – Day Bill	26.8017%
364 – Day Bill	27.7878%

Treasury bill rates edged down from the levels seen last week as the ongoing download pressures on the government’s short-date papers continued unabated. The pace of decline, however, simmered down this week compared to last week following the release of the consumer price index for May which confirmed the prevalence of upward price pressures on consumer prices as the month-on-month inflation rose for the second consecutive time to its highest in ten months. It is expected that lingering expectations of higher inflation numbers will slow down the pace of decline in Treasury yields in the near term.

The 91-day bill was little changed this week as it posted a marginal dip compared to last week’s 17 basis points (bps) drop. It moved down from 24.8698% posted last week to clear at 24.8675% this week.

The yield on the 182-day bill posted a modest loss of 3 bps compared to last week’s 11 bps dip. It cleared at 26.8017% this week from 26.8296% posted last week.

The 364-day bill similarly posted a 3 bps dip this week, having registered a fall of 11 bps last week. It fell from 27.8197% last week to clear at 27.7878% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	24.8698%	24.8675%	0.00	-0.01%	-14.96%
182 – Day	26.8296%	26.8017%	-0.03	-0.10%	-15.94%
364 – Day	27.8197%	27.7878%	-0.03	-0.11%	-14.46%

Auction results of tender 1908 revealed that after a disappointing period last week where investors interpreted the recent fall in the headline inflation to mean an affirmation of the continuous drop in yields, demand picked up steam this week on hopes that yields are likely to be sticky downwards. Consequently, the government achieved a marginal oversubscription of 1.4%.

A total of GHS 3,604.40 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 3,555.00 million. The government accepted all GHS 2,761.36 million, GHS 660.62 million, and GHS 182.42 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 2,656.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.12 billion worth of maturing papers due next week.