Treasury Rates [September 23, 2024]

Security	Interest Rates
91 – Day Bill	25.0104%
182 – Day Bill	26.8151%
364 – Day Bill	28.0789%

Treasury bill rates collectively rose for the fourth consecutive time this week in what appears to be a reversal of the downward trajectory in Treasury yields which has persisted in most part of the year. This is despite the recent and persistent drop in the inflation readings with the latest inflation print inching down to its lowest in more than two years. The uptick in the inflation readings has been supported by moves by the government to increase its domestic borrowings with attractive interest rates as the December polls draw near.

The 91-day bill came in as the star performer for the week, rising by 9 basis points (bps) to build on last week’s 1 bps increase. It rose from 24.9164% posted last week to clear at 25.0104% this week.

The yield on the 182-day bill rose by a basis point this week to build on last week’s tiny increase. It cleared at 26.8151% this week, up from 26.8012% posted the previous week.

The 364-day bill cleared higher by a basis point building on last week’s 2 bps increase. It rose from 28.0736% posted last week to clear at 28.0789% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	24.9164%	25.0104%	0.09	0.38%	-14.47%
182 – Day	26.8012%	26.8151%	0.01	0.05%	-15.90%
364 – Day	28.0736%	28.0789%	0.01	0.02%	-13.57%

Treasury results of tender 1921 showed that investors returned to being more cautious towards over-exposing themselves to the government’s assets as fears of election-linked uncertainties rise. The government subsequently missed its target by 25.3% after meeting its target last week.

A total of GHS 4,394.54 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 5,881.00 million. The government accepted all GHS 3,778.07 million, GHS 441.43 million, and GHS 175.04 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 7,438.00 million from 91-day, 182-day, and 364-day bills to meet GHS 3.0 billion worth of maturing papers due next week.