Treasury Rates [December 16, 2024]

Security	Interest Rates
91 – Day Bill	27.7739%
182 – Day Bill	28.4920%
364 – Day Bill	29.9430%

The yields on the government’s short-term assets continued their upward trajectory this week as the government hopes to use attractive rates to persuade investors to defer consumption. Treasury bill rates have mostly been on an upward trend beginning July with yields on a steady trajectory to close in on its year-to-date dip. This has mostly come on the back of the Cedi’s struggles coupled with a resurgence of price pressures on consumer goods. Treasury yields are expected to extend their gains to close the year.

The 91-day bill went up by 17 basis points (bps) this week, adding to last week’s 24 bps gain. It rose from 27.6028% posted last week to clear at 27.7739% this week.

The yield on the 182-day bill similarly registered a gain, up by 18 bps. It picked up from 28.3159% recorded last week to clear at 28.4920% this week.

The 364-day bill was little changed this week with a modest gain of 4 bps, better than last week’s 3 bps gain. It cleared at 29.9430% this week, up from 29.9057% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	27.6028%	27.7739%	0.17	0.62%	-5.02%
182 – Day	28.3159%	28.4920%	0.18	0.62%	-10.64%
364 – Day	29.9057%	29.9430%	0.04	0.12%	-7.83%

Treasury results of tender 1933 showed a surprise spike in investor interest in the government’s fixed-income securities, mainly on the back of the peaceful elections and the subsequent commencement of the transition process. Investors interpreted these moves as a smooth continuation of the government machinery. The government’s target amount was subsequently oversubscribed by 19.75%.

A total of GHS 8,200.58 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 6,848.00 million. The government accepted all GHS 6,740.76 million, GHS 951.67 million, and GHS 508.15 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 5,463.00 million from 91-day, 182-day, and 364-day bills to meet GHS 5.11 billion worth of maturing papers due next week.