Treasury Rates [November 18, 2024]

Security	Interest Rates
91 – Day Bill	26.9693%
182 – Day Bill	27.7876%
364 – Day Bill	29.2178%

Short-term Treasury yields rose for the sixth consecutive time this week as the government seeks to use higher yields to attract funds to support its year-end budget and increased expenditures as the December polls draw near. Expectations of higher inflation numbers on the back of the Cedi’s struggles against its trading pairs coupled with hikes in the prices of petroleum products have also been supportive of investors’ demand for higher returns on the government’s short-term papers.

The 91-day bill posted a modest gain at 14 basis points (bps) failing to reach the 26 bps level of increase reached last week. It rose from 26.8294% posted last week to 26.9693% this week.

The yield on the 182-day bill rose by a bigger margin this week at 11 bps compared with last week’s 9 bps increase. It surged to 27.7876% this week, up from 27.6763% recorded last week.

The 364-day bill posted a similar margin of increase recorded last week at 9 bps. It registered an increase from 29.1285% posted last week to top at 29.2178% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	26.8294%	26.9693%	0.14	0.52%	-7.77%
182 – Day	27.6763%	27.7876%	0.11	0.40%	-12.85%
364 – Day	29.1285%	29.2178%	0.09	0.31%	-10.06%

Treasury results of tender 1929 showed that for the first time in six weeks, the government failed to realize its targets as investors remained skeptical towards increasing their exposures at a time when there is an injunction application at the Supreme Court seeking an immediate halt to the government’s continues borrowing from the domestic Treasury market. Consequently, the government’s target amount was missed by 16.8%.

A total of GHS 5,180.50 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s overambitious target amount of GHS 6,228.00 million. The government accepted all GHS 3,942.91 million, GHS 653.43 million, and GHS 584.16 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 6,896.00 million from 91-day, 182-day, and 364-day bills to meet GHS 5.84 billion worth of maturing papers due next week.