Treasury Rates [February 17, 2025]

Security	Interest Rates
91 – Day Bill	26.8591%
182 – Day Bill	27.8057%
364 – Day Bill	29.0745%

Last week’s Treasury auction saw a repetition of the previous week’s phenomena where investors thronged the government’s short-term securities to the extent that the government in its quest to maintain a sound fiscal agenda was pushed to reject a significant junk of the bids tendered. This consequently led to a sharp fall in the Treasury yields, the third decrease in a row this year. The government’s actions over the past three weeks give an indication of an intentional effort to cut yields at a time when the prevailing inflation rate has shown a decline to 23.5%. It is expected that investors and market watchers would take a cue from these developments and subsequently lower their rate expectations.

The yield on the 91-day bill fell by 113 basis points (bps) this week, widening its year-to-date (YTD) losses to 4.72%. It cleared at 26.8591% this week, down from 27.9849% posted last week.

The 182-day bill recorded the least decline this week, down by 88 bps to add to last week’s 21 bps dip. It moved down to 27.8057% this week from 28.6856% posted last week.

The 364-day bill fell by the most this week, coming in with a decrease of 130 bps with a YTD loss of 3.57%. It plummeted from 30.3703% last week to clear at 29.0745% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	27.9849%	26.8591%	-1.13	-4.02%	-4.72%
182 – Day	28.6856%	27.8057%	-0.88	-3.07%	-3.84%
364 – Day	30.3703%	29.0745%	-1.30	-4.27%	-3.57%

Treasury results of tender 1942 revealed a massive expression of interest in the government’s short-term securities with investors rushing to advantage of the relatively higher real returns. Consequently, total bids tendered came in excess of 119.38% of the government’s target amount.

A total of GHS 17,699.41 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 8,068.00 million. The government in turn accepted 76.63%, 31.72%, and 43.77% of the GHS 6,820.71 million, GHS 4,594.54 million, and GHS 6,284.16 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 7,729.00 million from 91-day, 182-day, and 364-day bills to meet GHS 7,242 million worth of maturing papers due next week.