Treasury Rates [August 26, 2024]

Security	Interest Rates
91 – Day Bill	24.7895%
182 – Day Bill	26.6854%
364 – Day Bill	27.8135%

Treasury bill rates cleared lower this week in line with the recent drop in the inflation reading where the inflation rate recorded its fourth consecutive decline to its lowest in more than two years. According to the consumer price data released by the Ghana Statistical Service, a significant drop in the month-on-month inflation reading for the food category accounted mainly for the slowdown in July’s inflation number. After weeks of showing some level of resistance on the back of the government’s increased borrowing amidst growing expectations of higher inflation numbers, Treasury yields are expected to resume their downward trajectory into the near term.

The 91-day bill failed to sustain its 2 basis points (bps) gain registered last week as it fell by 5 bps this week. It fell from 24.8435% posted last week to clear at 24.7895% this week.

The yield on the 182-day bill fell by the most this week with a 6 bps drop this week to build on last week’s 2 bps drop. It moved down from 26.7469% posted last week to clear at 26.6854% this week.

The 364-day bill also saw a decline to the tune of a 4 bps dip, adding to last week’s marginal loss. It declined from 27.8509% posted last week to 27.8135% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	24.8435%	24.7895%	-0.05	-0.22%	-15.23%
182 – Day	26.7469%	26.6854%	-0.06	-0.23%	-16.30%
364 – Day	27.8509%	27.8135%	-0.04	-0.13%	-14.38%

Treasury results of tender 1917 showed that the government failed to reach its target this week, the seventh in a row as investors exercise caution over fears of the government possibly overspending its budget ahead of the December elections. The government thus received 98.3% of its target amount.

A total of GHS 5,230.59 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 5,319.00 million. The government accepted all GHS 3,725.86 million, GHS 1,251.99 million, and GHS 252.74 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 5,088.00 million from 91-day, 182-day, and 364-day bills to meet GHS 4.79 billion worth of maturing papers due next week.