Treasury Rates [September 2, 2024]

Security	Interest Rates
91 – Day Bill	24.8896%
182 – Day Bill	26.7890%
364 – Day Bill	27.9100%

The yields on the government’s short-term assets gained across the board at last Friday’s auction despite the ongoing disinflationary trend which has persisted over the past four months. Treasury rates have mainly been sticky downwards over the past few months supported by the government’s increased borrowings from the domestic market as key external funding windows remain shut to the republic. Treasury yields are expected to continue to post either minimal declines or seem to be recovering from some of this year’s declines on expectations that the government will borrow more to finance its budget as the December elections approach.

The yield on the 91-day bill edged up by 10 basis points (bps) this week to recover from last week’s 5 bps dip. It rose to 24.8896% this week from 24.7895% cleared last week.

The 182-day bill rose by a similar margin this week at 10 bps, rising from the previous week’s 6 bps loss. It moved up from 26.6854% posted last week to clear at 26.7890% this week.

The 364-day bill similarly rose from the previous week’s 4 bps dip to clear higher this week by a margin of 10 bps. It cleared at 27.9100% this week from 27.8135% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	24.7895%	24.8896%	0.10	0.40%	-14.88%
182 – Day	26.6854%	26.7890%	0.10	0.39%	-15.98%
364 – Day	27.8135%	27.9100%	0.10	0.35%	-14.09%

Treasury results of tender 1918 revealed that the margin of undersubscription for the government’s short-term securities widened this week as investors continued to exercise restraint towards increasing their exposures to Treasury assets. The government’s target was subsequently undersubscribed by 19.5%.

A total of GHS 4,094.39 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 5,088.00 million. The government accepted all GHS 2,532.03 million, GHS 1,357.13 million, and GHS 205.23 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 5,604.00 million from 91-day, 182-day, and 364-day bills to meet GHS 4.74 billion worth of maturing papers due next week.