Treasury Rates [February 10, 2025]

Security	Interest Rates
91 – Day Bill	27.9849%
182 – Day Bill	28.6856%

Last Friday’s Treasury bill auction saw an interesting turn of events as the government affirmed its intention of cutting its interest costs as prevailing yields remain fairly high above the inflation rate. The auction saw the government reject all bids tendered for the 364-day bill whilst the yields on the 91 and 182 tenors sustained some declines. This is in consonance with the recently released consumer price data which showed that the inflation rate fell for the first time in five months. It is expected that the ongoing signals of a reversal of the upward trend in Treasury yields will continue to persist until the 2025 budget statement gives a clearer hint about the future of the Treasury yield curve.

The 91-day bill fell the most by 43 basis points (bps) this week, adding onto last week’s 10 bps dip. It cleared at 27.9849% this week from 28.4129% posted last week.

The yield on the 182-day bill suffered a 21 bps decrease after sustaining a 17 bps loss last week. It moved down from 28.8984% posted last week to clear at 28.6856% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	28.4129%	27.9849%	-0.43	-1.51%	-0.73%
182 – Day	28.8984%	28.6856%	-0.21	-0.74%	-0.80%

Treasury results of tender 1941 showed a continuously growing interest in the government’s short-term securities as yields remained relatively high. The government met its target this week despite rejecting over GHS 2.00 million worth of the bids tendered for its 364-day bill. Total bids received for the remaining 91-day and 182-day bills showed an oversubscription of 45.48%.

A total of GHS 10,559.04 million worth of bids were tendered for the 91 and 182 tenors against the government’s target amount of GHS 7,258.00 million. The government in an attempt to stay within its target, accepted 63.15% and 85.38% of the GHS 6,139.35 million and GHS 4,419.69 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 8,068.00 million from 91-day, 182-day, and 364-day bills to meet GHS 6,636 million worth of maturing papers due next week as well as to create buffers for the upcoming payments on the Domestic Debt Exchange Programme bonds due later in the month.