Treasury Rates [September 16, 2024]

Security	Interest Rates
91 – Day Bill	24.9164%
182 – Day Bill	26.8012%
364 – Day Bill	28.0736%

Investors responded positively to the seeming pick up in Treasury yields despite the persistent decline in the inflation reading over the past five months with investor interest picking up this week to beat the government’s expectations after weeks of sluggish interest in the government’s short-term securities. The latest inflation reading released last week showed a further slowdown in the rate of increase in consumer prices as the inflation rate edged down marginally in August, the fifth consecutive decline. Investors, however, focused their attention on moves by the government to raise more domestic funding with attractive interest rates.

The yield on the 91-day bill rose marginally this week, recording an increase of 1 basis point. It rose from 24.8896% posted last week to clear at 24.9013% this week.

The 182-day was little changed at last Friday’s auction, repeating a similar performance last week. It rose marginally to 26.7899% this week from 26.7890% recorded last week.

The 364-day bill came in as the star performer for the week, recording an increase of 2 basis points to build on a similar performance last week. It rose to 27.9258% this week from 27.9100% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	24.8896%	24.9013%	0.01	0.05%	-14.84%
182 – Day	26.7890%	26.7899%	0.00	0.00%	-15.97%
364 – Day	27.9100%	27.9258%	0.02	0.06%	-14.04%

Treasury results of tender 1920 revealed that the government achieved its target this week after failing to do so over the past ten weeks. Accordingly, the government’s target was oversubscribed by 2.4%.

A total of GHS 5,529.67 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 5,400.00 million. The government accepted all GHS 4,689.56 million, GHS 594.37 million, and GHS 245.74 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 5,881.00 million from 91-day, 182-day, and 364-day bills to meet GHS 4.54 billion worth of maturing papers due next week.