Treasury Rates [January 22, 2024]

Security	Interest Rates
91 – Day Bill	28.8845%
182 – Day Bill	31.3956%
364 – Day Bill	31.9965%

Treasury bill rates recorded their third successive decline in 2024 this week as the inflation-backed downward pressures on the yields on the government’s shorter dated papers intensifies. This week’s Treasury performance comes as Ghana readies to receive the second tranche of USD 600.0 million under the IMF supported programme after having secured the nod of the IMF executive board during a review of Ghana’s performance under the Extended Credit Facility programme. It is expected that yields will continue to see some declines on back of expectations of slowing down inflation numbers.

The yield on the 91-day bill fell by 16 basis points (bps) this week to build on last week’s 15 bps dip. It declined to 28.8845% this week from 29.0399% registered last week.

The rate of decline in the yield on the 182-day bill slowed this week to 12 bps compared to last week’s 23 bps loss. It cleared at 31.3956%, down from 31.5154% posted last week.

The 364-day bill recorded a comparatively minimal loss of 9 bps this week, better than last week’s 26 bps dip. It fell from 32.0833% recorded last week to clear at 31.9965% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	29.0399%	28.8845%	-0.16	-0.54%	-1.22%
182 – Day	31.5154%	31.3956%	-0.12	-0.38%	-1.53%
364 – Day	32.0833%	31.9965%	-0.09	-0.27%	-1.51%

Auction results of tender 1886 revealed that there was an overwhelming participation in the government’s securities as investor confidence improves. The government subsequently achieved an oversubscription rate in excess of 72.0%.

A total of GHS 5,270.38 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 3,058.00 million. Constrained by an impending interest payment on the Domestic Debt Exchange Programme bonds, the government was forced to accept all bids tendered.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 2,532.00 million from 91-day, 182-day, and 364-day bills to meet GHS 2.36 billion worth of maturing papers due next week.