Treasury Rates [October 14, 2024]

Security	Interest Rates
91 – Day Bill	25.6182%
182 – Day Bill	26.9045%
364 – Day Bill	28.5814%

Treasury bill rates surged this week in line with the recent jump in the inflation rate with the yields on the government’s short-term securities continuing their upward trajectory after a brief reprieve last week on the back of the September policy rate cut. A 1.1 percentage point rise in the inflation rate indicating the prevalence of upward price pressures on consumer goods coupled with the government’s increased demand from the domestic market supported the upsurge in Treasury yields.

After sustaining a 19 basis points (bps) dip last week, the yield on the 91-day bill rose by 16 bps this week. It cleared at 25.6182% this week, up from 25.4568% recorded last week.

The 182-day bill went up by 10 bps this week, recovering part of last week’s 12 bps dip. It moved from 26.8000% posted last week to clear at 26.9045%.

The yield on the 364-day bill gained by 6 bps this week, trimming its year-to-date losses from 12.22% last week to 12.02%. It cleared at 28.5814% this week from 28.5173% posted the previous week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	25.4568%	25.6182%	0.16	0.63%	-12.39%
182 – Day	26.8000%	26.9045%	0.10	0.39%	-15.61%
364 – Day	28.5173%	28.5814%	0.06	0.22%	-12.02%

Treasury results of tender 1924 revealed that the government met its target this week, the first in the past four weeks as expectations of higher inflation numbers ahead of the yuletide drove investors to bid at higher rates. The government’s target was thus oversubscribed by 1.07%.

A total of GHS 4,613.93 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 4,565.00 million. The government accepted all GHS 3,887.83 million and GHS 500.68 million worth of bids tendered for the 91-day and 182-day bills. For the 364-day paper, the government accepted 99.76% of the total GHS 225.96 million worth of bids tendered.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 4,035.00 million from 91-day, 182-day, and 364-day bills to meet GHS 3.79 billion worth of maturing papers due next week.