Treasury Rates [July 22, 2024]

Security	Interest Rates
91 – Day Bill	24.7879%
182 – Day Bill	26.7129%
364 – Day Bill	27.8075%

Ahead of this week’s presentation of the mid-year budget review to Ghana’s parliament where the market will be on the lookout for signs as to whether the government will finance its budget for the next half of the year through the imposition of additional taxes or choose to increase its debt via its short-term securities, Treasury bill rates posted a mixed results as the inflationary path remain unclear. Recent Treasury performances have shown that the yields on the government’s assets are struggling to find directions as rates stabilize.

After staying unchanged last week, the 91-day bill fell marginally to 24.7879% this week from 24.7899% recorded in the previous week.

The yield on the 182-day bill fell by 3 basis points (bps) this week after it stayed unchanged last week. It dipped to 26.7129% this week from 26.7468% posted last week.

The 364-day bill built on last week’s tiny gain as the yield rose by 2 bps this week. It climbed up from 27.7880% posted last week to 27.8075% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	24.7899%	24.7879%	0.00	-0.01%	-15.23%
182 – Day	26.7468%	26.7129%	-0.03	-0.13%	-16.22%
364 – Day	27.7880%	27.8075%	0.02	0.07%	-14.40%

Auction results of tender 1912 revealed that demand failed to meet the government’s target amount for the second consecutive time on the back of expectations of downward inflation print in the headline inflation reading. The government accordingly received a 72.8% subscription rate.

A total of GHS 3,863.94 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 5,310.00 million. The government accepted all GHS 2,904.14 million, GHS 698.50 million, and GHS 261.30 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 4,779.00 million from 91-day, 182-day, and 364-day bills to meet GHS 3.85 billion worth of maturing papers due next week as well as to create buffers for the upcoming interest payments on the DDEP bonds.