Treasury Rates [August 12, 2024]

Security	Interest Rates
91 – Day Bill	24.8251%
182 – Day Bill	26.7642%
364 – Day Bill	27.8575%

Treasury bill rates remained largely unchanged this week ahead of the release of inflation numbers for July where expectations are growing that the inflation rate will record another dip on the back of the slower pace of depreciation recorded by the Cedi amid the relatively stable prices of petroleum products in the month. The rate of decline in the yields on the government’s short-term assets has seen a slowdown over the past few weeks as the government aims to raise more funds for the upcoming Interest payments on the DDEP bonds due later in August.

The 91-day bill recorded a marginal increase this week after posting a 4 basis points (bps) increase last week. It rose from 24.8247% posted last week to clear at 24.8251% this week.

The yield on the 182 day-bill was little changed this week as it rose marginally after recording an increase of 2 bps last week. It rose from 26.7640% posted last week to clear at 26.7642% this week.

The 364-day bill was the lone decliner this week as it recorded a tiny dip to erase last week’s minute increase. It moved down to 27.8575% this week from 27.8578% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	24.8247%	24.8251%	0.00	0.00%	-15.10%
182 – Day	26.7640%	26.7642%	0.00	0.00%	-16.05%
364 – Day	27.8578%	27.8575%	0.00	0.00%	-14.25%

Auction results of tender 1915 showed that the government failed to secure its target amount for the fifth consecutive time this week as investors remain skeptical towards the government’s increased borrowing. The government’s target was undersubscribed by 19.2% this week.

A total of GHS 5,300.10 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 6,558.00 million. The government accepted all GHS 4,101.77 million, GHS 967.19 million, and GHS 231.14 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 4,968 million from 91-day, 182-day, and 364-day bills to meet GHS 3.90 billion worth of maturing papers due next week as well as to create buffers for the upcoming interest payments on the DDEP bonds.