Treasury Rates [June 17, 2024]

Security	Interest Rates
91 – Day Bill	24.8698%
182 – Day Bill	26.8296%
364 – Day Bill	27.8197%

After a brief recovery which saw Treasury yields post some marginal gains across the board, the recent slump in the latest inflation reading for May gave the impetus for Treasury yields to extend their downward trajectory. Data released by the Ghana Statistical Service revealed that the headline inflation figure fell to its lowest in more than 24 months on the back of some declines in the prices of imported and food items. Month-on-month inflation reading, however, nearly doubled from the previous month’s level giving an indication of the prevalence of risks to the inflation outlook. This trend is expected to slow down the pace of decline in Treasury yields.

The yield on the 91-day bill fell by the most this week, recording a dip of 17 basis points (bps) after last week’s tiny gain. It moved down to 24.8698% this week from 25.0386% posted last week.

The 182-day bill maintained its standing as the bill with the sharpest decline in 2024 as it lost 11 bps this week to widen its year-to-date losses to 15.85%. It cleared at 26.8296% this week from 26.9397% last week.

The 364-day bill came in with a decrease of 11 bps this week, wiping off last week’s 2 bps gain. It fell from 27.9299% posted last week to clear at 27.8197% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	25.0386%	24.8698%	-0.17	-0.67%	-14.95%
182 – Day	26.9397%	26.8296%	-0.11	-0.41%	-15.85%
364 – Day	27.9299%	27.8197%	-0.11	-0.39%	-14.36%

Auction results of tender 1907 showed that after weeks of strong demand, investors grew wary over the drop in the consumer price index, causing them to act cautiously during last Friday’s auctions. Consequently, the government failed to achieve its target this week as it achieved a 98.6% subscription rate.

A total of GHS 4,833.59 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 4,900.00 million. The government accepted all GHS 3,767.33 million, GHS 924.19 million, and GHS 142.07 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 3,555.00 million from 91-day, 182-day, and 364-day bills to meet GHS 5.09 billion worth of maturing papers due next week.