Treasury Rates [July 1, 2024]

Security	Interest Rates
91 – Day Bill	24.8677%
182 – Day Bill	26.8011%
364 – Day Bill	27.7878%

In line with expectations, the pace of decline in the yield on the government’s Treasury papers slowed down drastically this week as growing expectations of upward inflation numbers following the Cedi’s persistent losses against its major trading partner currencies begin to mount pressures on rates. Treasury rates remained relatively unchanged this week ahead of the release of the consumer price index next week where the market will be expecting the inflation rate to trend above 20.0%.

The yield on the 91-day maintained its stability this week as it posted a tiny increase this week after a similar insignificant movement last week. It cleared at 24.8677% this week from 24.8675% posted last week.

The 182-day bill recorded a negligible decline this week, after posting a dip of 3 basis points (bps) last week. It moved down from 26.8017% posted last week to clear at 26.8011% this week.

The yield on the 364-day bill remained unchanged this week as it cleared at 27.7878% with a year-to-date decline of 14.46%.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	24.8675%	24.8677%	0.00%	0.00%	-14.96%
182 – Day	26.8017%	26.8011%	0.00%	0.00%	-15.94%
364 – Day	27.7878%	27.7878%	0.00%	0.00%	-14.46%

Auction results of tender 1909 showed that investors were optimistic that rates would remain stable into the near term, causing them to increase their exposures to the government’s assets. Bids tendered thus came in excess of 12.7% of the government’s target amount.

A total of GHS 2,995.83 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 2,656.00 million. The government accepted all GHS 2,358.07 million and GHS 64.31 million worth of bids tendered for the 91-day and 364-day bills respectively, but accepted 99.9% out of the GHS 573.45 million worth of bids tendered for the 182-day bill.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 3,247.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.76 billion worth of maturing papers due next week.