Treasury Rates [February 3, 2025]

Security	Interest Rates
91 – Day Bill	28.4129%
182 – Day Bill	28.8984%
364 – Day Bill	30.3703%

After weeks of embarking on a steady upward trajectory, interest rates on the government’s short-term securities fell for the first time in four months this week in what appears to be the new government beginning to exercise a firm grip of the economy. Although inflation data is due later this week, it is unclear what drove the decline in the yield as risks to the inflation outlook continue to persist. It is expected the inflation print for the first month of the year will show the prevalence of upward price pressures on consumer prices. Thus, the consumer price index is less likely to post any significant decline.

The 91-day bill declined by 10 basis points (bps) this week, wiping off a similar margin of gain recorded last week. It fell back to 28.4129% this week from 28.5153% recorded last week.

The 182-day bill sustained the deepest decline with a loss of 17 bps to upturn its year-to-date gains. It plunged to 28.8984% this week, down from 29.0664% recorded last week.

The yield on the 364-day bill posted a modest loss, registering a loss of 4 bps this week compared to last week’s 12 bps jump. It weakened from 30.4078% posted last week to clear at 30.3703% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	28.5153%	28.4129%	-0.10	-0.36%	0.79%
182 – Day	29.0664%	28.8984%	-0.17	-0.58%	-0.07%
364 – Day	30.4078%	30.3703%	-0.04	-0.12%	0.73%

Treasury results of tender 1940 revealed that despite investors expressing strong sentiments towards to the government’s assets on the back of the higher returns, the government signaled its intention to cut its interest costs. The government’s target was thus oversubscribed by 43.59%

A total of GHS 9,372.17 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 6,527.00 million. The government accepted 93.45%, 34.90%, and 99.13% of the total GHS 5,590.16 million, GHS 1,522.45 million, and GHS 2,259.56 million worth of bids tendered for the 91-day, 182-day and 364-day bills.

In the week ahead, we expect the government to return to the domestic market in an attempt to mobilize GHS 7,258.00 million from 91-day, 182-day, and 364-day bills to meet GHS 8,362 million worth of maturing papers due next week.