Treasury Rates [December 9, 2024]

Security	Interest Rates
91 – Day Bill	27.6028%
182 – Day Bill	28.3159%
364 – Day Bill	29.9057%

Treasury yields rose this week in consonance with expectations of higher inflation numbers on the back of increase in economic activities as the year draws to a close and as the Cedi’s struggles pose a significant risk to the inflation outlook. The recently released consumer price data revealed that inflation on imported items rose in November, pushing the national inflation figure to a seven-month high. Treasury yields are expected to continue their upward trajectory into the near term as risks to the inflation outlook continue to linger.

The 91-day bill came in as the star performer for the week with an increase of 24 basis points (bps) this week, up from an increase of 17 bps recorded last week. It soared to 27.6028% this week, up from 27.3620% posted last week.

The yield on the 182-day bill doubled its gains recorded last week with an increase of 22 bps this week. It rose from 28.0980% posted last week to clear at 28.3159% this week.

The 364-day posted a modest gain this week with an increase by 3 bps, struggling to beat the previous week’s 5 bps increase. It cleared at 29.9057% this week from 29.8794% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	27.3620%	27.6028%	0.24	0.88%	-5.61%
182 – Day	28.0980%	28.3159%	0.22	0.78%	-11.19%
364 – Day	29.8794%	29.9057%	0.03	0.09%	-7.94%

Treasury results of tender 1932 revealed that investors continued to exercise restraint towards over-exposing themselves to the government’s assets as the current government’s term of office expires. Consequently, the government’s target amount was undersubscribed by 19.9%.

A total of GHS 5,199.67 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s overambitious target amount of GHS 6,491.00 million. The government accepted all GHS 3,007.61 million, GHS 1,832.51 million, and GHS 359.55 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 6,848.00 million from 91-day, 182-day, and 364-day bills to meet GHS 6.41 billion worth of maturing papers due next week.