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%.
Latest Stories
-
Paris 2024: Opening ceremony showcases grandiose celebration of French culture and diversity
3 hours -
How decline of Indian vultures led to 500,000 human deaths
3 hours -
Paris 2024: Ghana rocks ‘fabulous fugu’ at olympics opening ceremony
4 hours -
Trust Hospital faces financial strain with rising debt levels – Auditor-General’s report
4 hours -
Electrochem lease: Allocate portions of land to Songor people – Resident demand
5 hours -
82 widows receive financial aid from Chayil Foundation
5 hours -
The silent struggles: Female journalists grapple with Ghana’s high cost of living
5 hours -
BoG yet to make any payment to Service Ghana Auto Group
5 hours -
‘Crushed Young’: The Multimedia Group, JL Properties surprise accident victim’s family with fully-furnished apartment
5 hours -
Asante Kotoko needs structure that would outlive any administration – Opoku Nti
6 hours -
JoyNews exposé on Customs officials demanding bribes airs on July 29
6 hours -
JoyNews Impact Maker Awardee ships first consignment of honey from Kwahu Afram Plains
7 hours -
Joint committee under fire over report on salt mining lease granted Electrochem
7 hours -
Life Lounge with Edem Knight-Tay: Don’t be beaten the third time
8 hours -
Pro-NPP group launched to help ‘Break the 8’
8 hours