Treasury Rates [May 1, 2023]

Security	Interest Rates
91 – Day Bill	19.9474%
182 – Day Bill	22.7106%

Short-term Treasury yields extended their recent upward trajectory for the sixth consecutive time at last Friday’s auction as limited funding options for public spending compel the Government to increase its domestic borrowing. Treasury rates have over the past one and half months seen consistent increases from previous levels after efforts by the governments to consolidate rates and reduce its interest burdens pushed the yields on the Government’s short-term papers to a nearly one-year low. The increase in rates of Treasury securities, however, comes amidst a declining inflation trend with analysts forecasting a further slowdown in the inflation rate in the short-term.

The yield on the 91-day bill went up marginally by 8 basis points (bps) to send its accumulated gains over the past six weeks to 142 bps. It cleared at 19.9474% at last Friday’s auction from 19.8635% the previous week.

The 182-day bill climbed up by a larger margin compared to last week’s increase. It cleared higher by 13 bps from 22.5758% registered last week to clear at 22.7106% this week.

Week-on-Week Changes

Tenor	Previous	Current	w-o-w Change	w-o-w % Change	Year-to-Date
91 – Day	19.8635%	19.9474%	0.08	0.42%	-43.59%
182 – Day	22.5758%	22.7106%	0.13	0.60%	-36.88%

Auction results of tender 1848 revealed that the Government met its target for the fifth consecutive time as assurances that Ghana is inching closer to an International Monetary Fund bailout boosted investors’ confidence in the Ghanaian economy. The Government subsequently achieved an oversubscription rate of 30.5%.

A total of GHS 2,068.31 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of 1,585.00 million. The government accepted all GHS 1,530.18 million worth of bids tendered for its 91-day bill but accepted GHS 537.02 million out of the GHS 538.13 million worth of bids tendered for its 182-day bill.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 1,834.00 million from 91-day, 182-day, and 364-day bills.