Treasury Rates [December 23, 2024]

Security	Interest Rates
91 – Day Bill	27.8521%
182 – Day Bill	28.5725%
364 – Day Bill	29.9569%

The pace of increase in the yields on the government’s short-term assets slowed this week in what appears to be Treasury rates inching towards a peak after months of strong increases fueled by a resurgence of inflationary pressures coupled with moves by the government to close its fiscal gap in an electioneering year by seeking to entice investors with attractive yields. Despite the sustained rise in inflation numbers over the past few months to top 23.0% in November, Treasury yields have far remained above the prevailing inflation numbers. Consequently, Treasury yields are expected to show slower growth in the near term.

The yield on the 91-day bill recorded a modest increase of 8 basis points (bps) to trim its year-to-date decline to 4.75% from 5.02% recorded last week. It cleared at GHS 27.8521% this week from 27.7739% posted last week.

The 182-day bill failed to sustain its margin of increase at 18 bps recorded last week as it only climbed up by 8 bps this week. It moved up from 28.4920% posted last week to clear at 28.5725% this week.

The 364-day bill was little changed this week, edging up by only a basis point, worse than last week’s 4 bps increase. It rose from 29.9430% posted last week to clear at 29.9569% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	27.7739%	27.8521%	0.08	0.28%	-4.75%
182 – Day	28.4920%	28.5725%	0.08	0.28%	-10.38%
364 – Day	29.9430%	29.9569%	0.01	0.05%	-7.78%

Treasury results of tender 1933 revealed that the government narrowly missed its target this week after recording a spike in demand last week as consumption levels surged ahead of the festive season. Accordingly, the government realized 98.9% of its issuance target.

A total of GHS 5,404.90 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 5,463.00 million. The government accepted all GHS 4,028.95 million, GHS 867.34 million, and GHS 508.61 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 4,262.00 million from 91-day, 182-day, and 364-day bills to meet GHS 4.82 billion worth of maturing papers due next week.