Treasury Rates [October 21, 2024]

Security	Interest Rates
91 – Day Bill	25.9444%
182 – Day Bill	27.0308%
364 – Day Bill	28.7371%

The yields on the government’s short-term securities cleared higher this week, adding onto gains recorded last week as a number of recent developments support investors’ demand for higher returns on the government’s fixed-income assets. These include expectations of higher inflation numbers as the year wraps up with the latest inflation rate for the start of the last quarter reversing course to post the first increase in six months. The Cedi’s struggles coupled with increasing crude oil prices on the international market are expected to further increase pressures on consumer prices. Also supporting the rate hikes is the government’s increased borrowing from the domestic market to supplement its 2024 election-year budget.

The 91-day bill came in as the star performer for the week, nudging up by 33 basis points (bps) to add onto last week’s 16 bps increase. It rose to 25.9444% this week, up from 25.6182% posted last week.

The yield on the 182-day bill cleared higher by 13, adding to last week’s 10 bps increase. It soared to 27.0308% this week from 26.9045% recorded last week.

The 364-day bill similarly cleared higher, up by 16 bps to trim its year-to-date losses to 11.54% from 12.02% last week. It moved up from 28.5814% posted last week to clear at 28.7371% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	25.6182%	25.9444%	0.33	1.27%	-11.28%
182 – Day	26.9045%	27.0308%	0.13	0.47%	-15.22%
364 – Day	28.5814%	28.7371%	0.16	0.54%	-11.54%

Treasury results of tender 1925 showed that the government realized its target for the second consecutive time as investors gradually began to buy into attractive yields on the government’s short-term assets. The government’s target was subsequently oversubscribed by 3.97% this week, better than last week’s 1.07%.

A total of GHS 4,195.32 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 4,035.00 million. The government accepted all GHS 3,520.97 million, GHS 545.83 million, and GHS 128.52 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 3,980.00 million from 91-day, 182-day, and 364-day bills to meet GHS 3.53 billion worth of maturing papers due next week.