Treasury Rates [November 4, 2024]

Security	Interest Rates
91 – Day Bill	26.5645%
182 – Day Bill	27.5848%
364 – Day Bill	29.0378%

Treasury bill rates continued their upward trajectory into the first week of November as expectations of higher inflation numbers as the year draws to a close remain supportive of investors asking for higher yields. The growing expectations of higher inflation numbers stem from the Cedi’s free fall as demand for forex remains untamable as prices of petroleum products see persistent increases. The yields on the government’s short-term assets are expected to see further increases in the near term as the government hopes to increase its borrowing from the domestic market to meet its rising election-linked expenditures.

The 91-day bill came in as the star performer for the week, edging up by 37 basis points (bps) to build on last week’s 25 bps increase. It rose from 26.1901% posted last week to clear at 26.5645% this week.

The yield on the 182-day went up by 29 bps this week, higher than last week’s increase of 26 bps. It rose to 27.5848% this week from 27.2911% posted last week.

The 364-day bill posted the least increase this week, up by only 7 bps and failing to match last week’s strong 23 bps increase. It rose modestly to 29.0378% this week, up from 28.9706% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	26.1901%	26.5645%	0.37	1.43%	-9.16%
182 – Day	27.2911%	27.5848%	0.29	1.08%	-13.48%
364 – Day	28.9706%	29.0378%	0.07	0.23%	-10.61%

Treasury results of tender 1927 showed that the government met its target this week, the fifth in a row as the government uses higher yields to push investors to postpone their consumptions. The government however barely met its target as its target, which was oversubscribed by 1.7%.

A total of GHS 4,078.20 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 4,010.00 million. The government accepted all GHS 3,327.46 million, GHS 549.96 million, and GHS 200.78 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 5,623.00 million from 91-day, 182-day, and 364-day bills to meet GHS 5.27 billion worth of maturing papers due next week.