Treasury Rates [April 7, 2025]

Security	Interest Rates
91 – Day Bill	15.6499%
182 – Day Bill	16.5015%
364 – Day Bill	18.8303%

The yields on the government’s short-term securities ticked lower this week, adding to its recent streak of downward performances despite the central bank’s decision to hike the policy rate. This phenomenon has created a policy divergence as the Monetary Policy Committee (MPC) renewed its tougher stance against a sticky downward inflationary path while the fiscal authorities are seen to be loosening interest rates. The central bank’s MPC in late March handed down a 1 percentage point increase in the policy rate whilst also announcing a set of complementary measures aimed at re-anchoring the disinflation process. The announcement came at a time when interest rates on Treasury papers have declined by an average of 12.0% in the first three months of the year.

After losing by 2 basis points (bps), the 91-day bill further lost by a wider margin this week, tumbling by 6 bps. It cleared at 15.6499% this week, down from 15.7108% posted last week.

The yield on the 182-day bill fell the most this week, down by 23 bps to build on last week’s 19 bps drop. It fell from 16.7330% posted last week to clear at 16.5015% this week.

The 364-day bill maintained its relative stability as it lost by a tiny margin, 1 basis point, after holding steady last week. It moved down from 18.8449% posted last week to clear at 18.8303% this week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	15.7108%	15.6499%	-0.06	-0.39%	-44.48%
182 – Day	16.7330%	16.5015%	-0.23	-1.38%	-42.94%
364 – Day	18.8449%	18.8303%	-0.01	-0.08%	-37.55%

Auction results of tender 1949 showed that demand fell short of the government’s target amount for the third consecutive time, as investors reassessed the impact of the sharp decline in yields on their portfolio whilst attempting to find alternative investment schemes. The government’s target was subsequently undersubscribed by 7.60%.

A total of GHS 4,057.48 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 4,391.00 million. The government accepted 42.90%, 16.18%, and 91.50% of the GHS 3,380.05 million, GHS 501.17 million, and GHS 146.26 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 6,678.00 million from 91-day, 182-day, and 364-day bills to meet GHS 6,132 million worth of maturing papers due next week.