Treasury Rates [January 6, 2025]

Security	Interest Rates
91 – Day Bill	28.1903%
182 – Day Bill	28.9173%
364 – Day Bill	30.1514%

The yields on the government’s short-term assets began the new year on a rising note as rates across the three tenors recorded gains from the previous week’s levels buoyed by expectations of higher inflation numbers following the strong pick-up in economic activities during the yuletide. A rise in the prices of staples on the back of the dry season has similarly fed into the rising expectations of higher inflation rate in December. It is expected that the pick-up in Treasury yields will continue to persist into the first quarter of the year until the new government finds its bearings.

The yield on the 91-day bill rose by 15 basis points (bps) this week against an increase of 18 bps recorded last week. It rose from 28.0363% posted last week to clear at 28.1903% this week.

The 182-day bill came in as the star performer for the week, registering a sharp rise of 23 bps compared to last week’s 11 bps increase. It soared to 28.9173%, up from 28.6832% posted last week.

The 364-day bill rose by a smaller margin this week with an 8 bps increase compared to last week’s 11 bps increase. It strengthened to 30.1514% this week from 30.0706% registered last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	28.0363%	28.1903%	0.15	0.55%	0.00%
182 – Day	28.6832%	28.9173%	0.23	0.82%	0.00%
364 – Day	30.0706%	30.1514%	0.08	0.27%	0.00%

Treasury results of tender 1935 revealed that the government met its target for the second consecutive time as investors responded positively to the rising yields. Accordingly, the government’s target amount was oversubscribed by 24.65%.

A total of GHS 5,392.39 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 4,326.00 million. The government accepted all GHS 1,235.82 million worth of bids tendered for the 364-day bills and accepted 99.78% and 97.89% of the GHS 3,539.17 million and GHS 617.40 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 5,198.00 million from 91-day, 182-day, and 364-day bills to meet GHS 4,855.00 million worth of maturing papers due next week.