Treasury Rates [December 2, 2024]

 

Security	Interest Rates
91 – Day Bill	27.3620%
182 – Day Bill	28.0980%
364 – Day Bill	29.8794%

 

The yields on the government’s short-term securities rose this week for the eighth consecutive time as the government aims to cover and complete its 2024 expenditures by using attractive rates to entice investors. The sustained rise in Treasury yields has also been supported by expectations of higher inflation numbers as the year draws to a close, a period mostly characterized with increased consumption and household expenditures.

The yield on the 91-day bill inched up by 17 basis points (bps) this week, adding to last week’s 22 bps gain. It rose to 27.3620% this week, up from 27.1925% recorded last week.

The 182-day bill recorded a modest gain this week at 11 bps compared to last week’s 20 bps increase. It rose from 27.9884% registered last week to clear at 28.0980% this week.

The 364-day bill recorded a marginal gain at 5 bps, failing to match last week’s impressive 61 bps increase. It cleared at 29.8794% this week from 29.8245% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	27.1925%	27.3620%	0.17	0.62%	-6.43%
182 – Day	27.9884%	28.0980%	0.11	0.39%	-11.87%
364 – Day	29.8245%	29.8794%	0.05	0.18%	-8.02%

 

Treasury results of tender 1931 showed that the government failed to realize its target for the third consecutive time as investors acted cautiously ahead of this week’s general elections where the outcome will reshape Ghana’s approach to public debt management in the coming year. Consequently, the government’s target was undersubscribed by 37.1%.

A total of GHS 3,835.93 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s overambitious target amount of GHS 6,098.00 million. The government accepted all GHS 2,949.98 million, GHS 669.37 million, and GHS 216.58 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 6,491.00 million from 91-day, 182-day, and 364-day bills to meet GHS 6.08 billion worth of maturing papers due next week.