Treasury Rates [September 30, 2024]

Security	Interest Rates
91 – Day Bill	25.6439%
182 – Day Bill	26.9248%
364 – Day Bill	28.6785%

The yields on the government’s short-term papers recorded their fifth consecutive gain this week as the government employs aggressive tactics to attract funding to sustain its expenditures ahead of the December elections. This week’s Treasury performance comes after the Monetary Policy Committee of the central bank handed down its first rate cut since January in line with policy rate cuts by other global central banks as inflation gradually cools off.

The yield on the 91-day bill recorded its biggest increase in the year this week with a 63 basis points (bps) surge. It rose to 25.6439% this week, up from 25.0104% posted last week.

The 182-day bill was up by 11 bps this week to build on last week’s 1 bps increase. It soared from 26.8151% posted last week to clear at 26.9248% this week.

The 364-day bill surged by 60 bps this week to trim its year-to-date losses from 13.6% last week to 11.7% this week. It rose from 28.0789% posted last week to clear at 28.6785% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	25.0104%	25.6439%	0.63	2.53%	-12.30%
182 – Day	26.8151%	26.9248%	0.11	0.41%	-15.55%
364 – Day	28.0789%	28.6785%	0.60	2.14%	-11.72%

Treasury results of tender 1922 revealed that investors sat on the fence as they showed concern over the government’s increased demand from the domestic Treasury market with the recent increase in yields having minimal impact on the demand for Treasury bills. Accordingly, the government’s target was undersubscribed by 35.9%.

A total of GHS 4,767.41 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 7,438.00 million. The government accepted all GHS 2,598.70 million, GHS 830.28 million, and GHS 1338.43 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 5,980.00 million from 91-day, 182-day, and 364-day bills to meet GHS 3.0 billion worth of maturing papers due next week.