Treasury Rates [August 19, 2024]

Security	Interest Rates
91 – Day Bill	24.8435%
182 – Day Bill	26.7469%
364 – Day Bill	27.8509%

Treasury bill rates came in mixed at last Friday’s auction as yields in recent times struggle for directions following the lack of clarity on the path of the inflation outlook. The latest inflation print released by the Ghana Statistical Service revealed that the inflation rate recorded its fourth successive decrease to its lowest in over two years. The July sitting of the Monetary Policy Committee had earlier warned that there exists some uncertainty regarding the inflation path for the year, given recent forex pressures, upward adjustment in utility tariffs, and increases in fuel prices.

The 91-day bill recorded its fourth consecutive increase this week albeit at a much slower pace as it rose by 2 basis points this week to build on last week’s tiny increase. It rose from 24.8251% posted last week to clear at 24.8435% this week.

The yield on the 182-day bill failed to hold onto its recent traction as it plummeted by 2 bps this week after recording a marginal increase last week. It moved down from 26.7642% posted last week to clear at 26.7469% this week.

The 364-day bill nudged down by a basis point, failing to post a recovery from last week’s marginal dip. It fell from 27.8575% posted last week to 27.8509% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	24.8251%	24.8435%	0.02	0.07%	-15.04%
182 – Day	26.7642%	26.7469%	-0.02	-0.06%	-16.11%
364 – Day	27.8575%	27.8509%	-0.01	-0.02%	-14.27%

Auction results of tender 1916 revealed that investors remained skeptical towards the government’s short-term papers as the government’s domestic borrowing increased amidst a slowdown in the inflation readings. The government missed its target amount for the sixth consecutive time this week with the target amount undersubscribed by 6.9%.

A total of GHS 4,624.63 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 4,968.00 million. The government accepted all GHS 3,606.12 million, GHS 733.59 million, and GHS 284.92 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 5,319.00 million from 91-day, 182-day, and 364-day bills to meet GHS 7.23 billion worth of maturing papers due next week.