Treasury Rates [January 09, 2023]

Security	Interest Rates
91 – Day Bill	35.6595%
182 – Day Bill	35.9471%

Short-term Treasury rates came in mixed this week as the 182-day bill failed to build on gains recorded last week whilst the yield on the 91-day bill edged up to build on previous weeks’ gains. Treasury yields have seen a downward trajectory as the year, 2022, drew to a close. The recent sluggish performance in Treasury yields comes at a time that the government is seeking to restructure its domestic debt. This week’s Treasury performance comes ahead of the release of consumer price statistics where the rate of inflation is expected to end the year above the government’s projected year-end inflation target.

The yield on the 91-day bill recorded its third consecutive weekly gain this week after shedding 125 basis points (bps) in the previous weeks. It rose by 30 bps to clear at 35.6595%, having risen from 35.3634% posted last week.

The yield on the 182-day continued to struggle after it declined by 3 bps this week, having already lost 82 bps over the past five weeks. It slowed down from 35.9796% posted last week to clear at 35.9471% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	35.3634%	35.6595%	0.30	0.84%	0.84%
182 – Day	35.9796%	35.9471%	-0.03	-0.09%	-0.09%

Auction results of tender 1832 showed that after last week’s miss, demand picked up steam this week as economic activities gather momentum after the festive season. The government accordingly achieved an oversubscription rate of 15.5%.

A total of GHS 1,722.91 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of GHS 1,492.00 million. The government, however, accepted GHS 1,405.70 million out of GHS 1,411.00 million worth of bids tendered for the 91-day bill and similarly accepted GHS 270.32 million out of GHS 311.91 million worth of bids tendered for the 182-day bill.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 1,125 million from 91-day, 182-day, and 364-day bills.