Treasury Rates [September 9, 2024]

Security	Interest Rates
91 – Day Bill	24.9013%
182 – Day Bill	26.7899%
364 – Day Bill	27.9258%

Treasury bill rates collectively rose for the second consecutive time this week in line with expectations that yields are likely to remain sticky downwards to posting moderate gains in the near term on the back of the government’s increased borrowing from the domestic market amid concerns that the government is anticipated to overspend its budget as the nation heads to the polls in December.

The 91-day bill recorded a tiny gain this week, up by a basis point after recording a 10 basis points (bps) increase last week. It rose from 24.8896% posted last week to clear at 24.9013% this week.

The 182-day bill was little changed this week as it struggled to build on last week’s 10 bps gain. It rose to 26.7899% this week from 26.7890% posted last week.

The yield on the 364-day bill similarly recorded an increase, up by 2 bps to build on the previous week’s 10 bps gain. It edged up to 27.9258% this week, up 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 1919 showed that investors continued to exercise caution with the general elections in view. For the ninth consecutive time, investors sat on the fence as they sought to limit their exposures in government assets. Consequently, the government missed its target by 13.5%, an improvement over last week’s nearly 20.0% undersubscription.

A total of GHS 4,849.14 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 5,604.00 million. The government accepted all GHS 3,903.45 million, GHS 748.58 million, and GHS 197.11 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 5,400.00 million from 91-day, 182-day, and 364-day bills to meet GHS 5.03 billion worth of maturing papers due next week.