Treasury Rates [January 13, 2025]

Security	Interest Rates
91 – Day Bill	28.3385%
182 – Day Bill	28.9642%
364 – Day Bill	30.1762%

In line with the recent inflation print where data on the consumer price index showed protracted upward pressures on the prices of consumer goods and services, Treasury bill rates inched up this week to build on gains seen in the latter part of the previous year. The inflation data released by the statistical service showed that although month-on-month inflation reading recorded a deflation slowing down from 2.6% in November to 1.8% in December, the annual inflation rate edged up 80 basis points (bps) to close the year at 23.8%. This ties in with the market’s expectations of a rise in the consumer price reading. It is expected that investors will continue to seek higher yields as risks to the inflation outlook linger.

The 91-day bill registered the same margin of increase recorded last week, up by 15 bps. It cleared at 28.3385% this week from 28.1903% registered last week.

The yield on the 182-day bill after recording a significant jump last week where it went up by 23 bps, failed to replicate similar performance as it only rose by 5 bps this week. It rose from 28.9173% last week to clear at 28.9642% this week.

The 364-day was little changed this week, recording a minimal increase of 2 bps. It picked up from 30.1514% posted last week to clear at 30.1762% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	28.1903%	28.3385%	0.15	0.53%	0.53%
182 – Day	28.9173%	28.9642%	0.05	0.16%	0.16%
364 – Day	30.1514%	30.1762%	0.02	0.08%	0.08%

Treasury results of tender 1936 showed an overwhelming interest in the government’s assets on the back of expectations of a further climb in the inflation rate and confidence in the new government. Consequently, the government’s targets were oversubscribed by a whopping 55.36%.

A total of GHS 8,075.75 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 5,198.00 million. The government accepted all GHS 5,513.76 million, GHS 1,416.66 million, and GHS 1,145.33 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 6,353.00 million from 91-day, 182-day, and 364-day bills to meet GHS 5,532 million worth of maturing papers due next week.