Treasury Rates [November 11, 2024]

Security	Interest Rates
91 – Day Bill	26.8294%
182 – Day Bill	27.6763%
364 – Day Bill	29.1285%

The recently issued consumer prices data for October validated the market’s expectations of higher inflation numbers, which have persisted for some time now, pushing investors to demand higher returns on their investments. Thus, Treasury bill rates climbed higher again this week for the fifth consecutive time as yields jumped to their highest in eight months. It is further expected that the yields on the government’s short-term assets will continue their run as pressures on the Cedi and hikes in the prices of petroleum products escalate.

The 91-day bill continued its impressive run this week as it surged by 26 basis points (bps) to build on last week’s 37 bps increase. It rose to 26.8294% this week, up from 26.5645% posted last week.

The yield on the 182-day bill posted a modest gain this week, up by 9 bps and failing to match last week’s 29 bps increase. It rose from 27.5848% posted last week to clear at 27.6763% this week.

The 364-day bill went up by 9 bps this week, better than last week’s 7 bps surge. It moved up from 29.0378% posted last week to 29.1285% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	26.5645%	26.8294%	0.26	1.00%	-8.25%
182 – Day	27.5848%	27.6763%	0.09	0.33%	-13.19%
364 – Day	29.0378%	29.1285%	0.09	0.31%	-10.33%

Treasury results of tender 1928 revealed that investors remained attracted to the rising yields on Treasury papers as they renewed their confidence in the government’s assets. Consequently, the government achieved its target for the fifth consecutive time with bids coming in excess of 3.6% of the target amount.

A total of GHS 5,825.90 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 5,623.00 million. The government accepted all GHS 5,107.85 million, GHS 560.07 million, and GHS 157.98 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 6,228.00 million from 91-day, 182-day, and 364-day bills to meet GHS 4.97 billion worth of maturing papers due next week.