Treasury Rates [October 28, 2024]

Security	Interest Rates
91 – Day Bill	26.1901%
182 – Day Bill	27.2911%
364 – Day Bill	28.9706%

Treasury bill rates edged higher this week for the third consecutive time on the back of expectations of higher inflation numbers as the year wraps up – a period mostly characterized by increase in economic activities. Already, inflation has begun to show signs of a pickup with the latest reported inflation showing a jump after five months of staying on a downward trajectory. The Cedi’s struggles against its major international trading partner currencies coupled with a rise in the prices of petroleum products is expected to exacerbate the lingering pressures on consumer prices further.

The 91-day bill posted a modest gain at 25 basis points (bps) this week compared with last week’s 33 bps increase. It rose from 25.944% posted last week to 26.1901% this week.

The 182-day posted the biggest increase this week, climbing up by 26 bps against last week’s 13 bps increase. It hardened from 27.0308% posted last week to clear at 27.2911% this week.

The yield on the 364-day bill rose by 23 bps this week to send its accumulated gains over the past three weeks to nearly 0.50%. It soared to 28.9706% this week, up from 28.7371% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	25.9444%	26.1901%	0.25	0.95%	-10.44%
182 – Day	27.0308%	27.2911%	0.26	0.96%	-14.40%
364 – Day	28.7371%	28.9706%	0.23	0.81%	-10.82%

Treasury results of tender 1926 revealed that tactics to draw investors to increase their participation in the government’s assets seem to be yielding the required results with the government meeting its target for the third time in a role this week. The government’s target was thus oversubscribed by 11.11%

A total of GHS 4,422.11 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 3,980.00 million. The government accepted all GHS 3,188.12 million and GHS 176.32 million worth of bids tendered for the 91-day and 364-day bills respectively. Against the 182-day bill, the government accepted 99.94% of the total GHS 957.67 bids that were tendered.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 4,010.00 million from 91-day, 182-day, and 364-day bills to meet GHS 3.97 billion worth of maturing papers due next week.