-Advertisement-

T-bill yields to continue downward trend

Source The Ghana Report

Treasury yields are expected to tumble further due to the positive inflation outlook in the medium term.

Inflation took a nose dived in April 2024 to 25.00% from 25.80% in March 2024. The decline in the headline rate was occasioned by a 280-basis decrease in food inflation to 26.80%, while non-food inflation also fell by 90 basis points to 23.5%.

However, the month-on-month inflation for April 2024 stood at 1.80%, above the 0.80% recorded in March 2024.

“Our view hinges on a broadly favourable outlook with a decent risk premium spread, comparing the April 2024 annual inflation rate and prevailing T-bills yields”, Databank Research said.

Policy rate cut to remain same

Analysts however believe the inflation trend so far in 2024 may dent prospects of a policy rate cut in May 2024.

Treasury bills were oversubscribed in last week’s money market auction, as total bids exceeded the treasury’s target.

The government accepted all bids totalling GH¢4.92 billion, above the auction target by 33.83% and matured bills by 42.36%.

The 91-day yield decreased by 25 basis points to 25.20%, while the 182-day bill contracted 40 basis points to 27.00%.

The yield on the 364-day bill was unchanged at 28.00%.

Leave A Comment

Your email address will not be published.

You might also like
where to buy viagra buy generic 100mg viagra online
buy amoxicillin online can you buy amoxicillin over the counter
buy ivermectin online buy ivermectin for humans
viagra before and after photos how long does viagra last
buy viagra online where can i buy viagra