Treasury Rates [January 20, 2025]

Security	Interest Rates
91 – Day Bill	28.4173%
182 – Day Bill	28.9713%
364 – Day Bill	30.2867%

Treasury bill rates cleared higher this week, adding onto its upward streak albeit at a much slower pace to signal that yields may be approaching their peak after embarking on a steady upward trajectory beginning September last year. The yields on the government short-team papers have seen a steady rise following the emergence of risks to the inflation outlook with the latest inflation data affirming upward pressures on the prices of consumer goods and services. Treasury yields are expected to continue to post minimal increases in the first quarter of the year before the new budget kicks in which would provide guidance as to the future path of interest rates.

The yield on the 91-day bill failed to go a notch higher against last week’s 15 basis points (bps) as it only rose by 8 bps this week. It rose from 28.3385% last week to clear at 28.4173% this week.

The 182-day bill was little changed this week, recording a marginal gain of a basis point compared to last week’s 5 bps gain. It rose to 28.9713% this week from 28.9642% posted last week.

The 364-day bill came in as the star performer for the week, recording an increase of 11bps. It picked up to 30.2867% this week from 30.1762% recorded last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	28.3385%	28.4173%	0.08	0.28%	0.81%
182 – Day	28.9642%	28.9713%	0.01	0.02%	0.19%
364 – Day	30.1762%	30.2867%	0.11	0.37%	0.45%

Treasury results of tender 1938 revealed that investors continued to rush to take positions in the government’s short-term papers as yields continued to soar with real returns on investments gradually improving. The government subsequently met its target, which was oversubscribed by 39.9%.

A total of GHS 8,890.79 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 6,353.00 million. The government accepted all GHS 1,883.88 million worth of bids tendered for the 364-day bills and accepted 99.3% and 99.1% of the total GHS 5,688.24 million and GHS 1,318.67 million worth of bids tendered for the 91-day and 182-day bills respectively.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 6,001.00 million from 91-day, 182-day, and 364-day bills to meet GHS 5,603 million worth of maturing papers due next week as well to create buffers for the upcoming interest payments on Domestic Debt Exchange Programme bonds.