Treasury Rates [July 15, 2024]

Security	Interest Rates
91 – Day Bill	24.7899%
182 – Day Bill	26.7468%
364 – Day Bill	27.7880%

Last week’s announcement of the third successive dip in the consumer price index had minimal bearing on the already downtrodden yields on the government’s short-term Treasury securities as rates stayed largely unchanged at last Friday’s auction. Data released by the Ghana Statistical Service revealed that both headline and month-on-month inflation recorded a dip in June despite the prevalence of risks to the inflation outlook resulting from the continuous fall of the Cedi amid a surge in the prices of staples. Treasury yields are expected to maintain relative stability on the back of underlying risks to the inflation outlook.

The yield on the 91-day bill remained unchanged this week after shedding 8 basis points last week. It cleared at 24.7899% this week.

The 182-day bill similarly stayed same at last week’s level with a year-to-date dip of 16.11%. It remained at 26.7468%.

The 364-day bill was little changed this week with a minimal increase after staying same last week. It cleared at 27.7880% this week, up from 27.7878% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	24.7899%	24.7899%	0.00	0.00%	-15.22%
182 – Day	26.7468%	26.7468%	0.00	0.00%	-16.11%
364 – Day	27.7878%	27.7880%	0.00	0.00%	-14.46%

Auction results of tender 1911 showed that the government received a subscription rate of 95.07% as investors digested the recent inflation print for cues as to how this development will likely impact the policy rate and rates in general.

A total of GHS 4,488.28 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 4,721.00 million. The government accepted all GHS 3,540.92 million, GHS 782.00 million, and GHS 165.36 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 5,310.00 million from 91-day, 182-day, and 364-day bills to meet GHS 4.24 billion worth of maturing papers due next week as well as to create buffers for the next interest payments on the DDEP bonds.