Treasury Rates [December 30, 2024]

Security	Interest Rates
91 – Day Bill	28.0363%
182 – Day Bill	28.6832%
364 – Day Bill	30.0706%

Treasury bill rates cleared higher on the last auction day for the year 2024, registering bigger margins of increase to surpass movements seen last week. The yields on the government’s short-term assets have stayed on an upward trajectory in the second half of the year with the year-to-date (YTD) losses on the 91-day, 182-day, and 364-day bills recovering from a 2024-year low of 15.23%, 16.30%, and 14.46% to end the year with YTD losses of 4.12%, 10.04%, and 7.43% respectively. The recovery in Treasury yields have mostly been supported by a resurgence of upward price pressures and increased government spending in an election year.

The 91-day bill recorded its biggest increase in three weeks this week, edging up by 18 basis points (bps) from an increase of 8 bps recorded last week. It soared to 28.0363% this week, up from 27.8521% posted last week.

The yield on the 182-day bill nudged up 11 bps this week, its twelfth consecutive weekly gain. It rose from 28.5725% posted last week to 28.6832% this week.

The 364-day bill similarly climbed up 11 bps this week, overshadowing last week’s tiny increase of a basis point. It rose to 30.0706% this week from 29.9569% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	27.8521%	28.0363%	0.18	0.66%	-4.12%
182 – Day	28.5725%	28.6832%	0.11	0.39%	-10.04%
364 – Day	29.9569%	30.0706%	0.11	0.38%	-7.43%

Treasury results of tender 1934 showed that the government realized its target amount this week, having narrowly missed its target last week as expectations of a higher year-end inflation figure drove investors to increase their holdings in the government’s assets. Consequently, the government’s target was oversubscribed by 9.0%.

A total of GHS 4,645.87 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 4,262.00 million. The government accepted all GHS 3,838.34 million, GHS 628.16 million, and GHS 179.37 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 4,326.00 million from 91-day, 182-day, and 364-day bills to meet GHS 4.04 billion worth of maturing papers due next week.