Treasury Rates [October 7, 2024]

Security	Interest Rates
91 – Day Bill	25.4568%
182 – Day Bill	26.8000%
364 – Day Bill	28.5173%

Treasury bill rates declined this week in line with the recent policy rate cut with the central bank’s assessment of the inflation outlook revealing that inflation would continue to ease towards the range target of 13.0% to 17.0% for the year and then steadily track back towards the medium-term target of 8.0% ± 2.0% by the end of next year barring any unanticipated shocks. The latest consumer prices data released last week, however, showed that the inflation rate edged up in September after four months of persistent decreases.

The 91-day bill recorded its first decrease in seven weeks this week, dipping by 19 basis points (bps) to trim part of last week’s massive 63 bps jump. It moved down to 25.4568% this week from 25.6439% posted last week.

The yield on the 182-day bill similarly failed to extend its recent gains as it declined by 12 bps this week. It cleared at 26.8000% this week, down from 26.9248% posted last week.

The 364-day bill fell by 16 bps this week, failing to build on last week’s 60 bps increase. It slowed down from 28.6785% posted last week to clear at 28.5173% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	25.6439%	25.4568%	-0.19	-0.73%	-12.94%
182 – Day	26.9248%	26.8000%	-0.12	-0.46%	-15.94%
364 – Day	28.6785%	28.5173%	-0.16	-0.56%	-12.22%

Treasury results of tender 1923 showed that for the third consecutive time, the government failed to realize its target amount as investors expressed doubt in the government’s ability to maintain fiscal discipline as the election draws near. Consequently, the government’s target was undersubscribed by 38.6%.

A total of GHS 3,674.41 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 5,980.00 million. The government accepted all GHS 2,911.51 million, GHS 572.95 million, and GHS 189.95 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 4,565.00 million from 91-day, 182-day, and 364-day bills to meet GHS 4.23 billion worth of maturing papers due next week.