Treasury Rates [February 24, 2025]

Security	Interest Rates
91 – Day Bill	24.4786%
182 – Day Bill	25.3874%
364 – Day Bill	27.2996%

Treasury bill rates tumbled this week, continuing its recent streak of downward trajectory as the new government in a bid to tighten its expenditures and reduce its interest burdens continues its draconian technique of pushing down rates. This week’s Treasury performance is the fourth in a series of yield declines in Treasury papers over the past eight weeks. The outlook for the yields on the government’s short-term papers remains unclear as rates steadily decline toward the prevailing inflation figure. The inflation data due next week will be expected to give a clearer indication of how low Treasury yields are likely to tank.

The 91-day bill more than doubled its previous week’s decline as it lost by 238 basis points (bps) this week. It fell from 26.8591% posted last week to 24.4786% this week.

The 182-day bill sustained the biggest decline this week, edging down by 242 bps to add to last week’s 88 bps dip. It fell from 27.8057% registered last week to clear at 25.3874% this week.

The yield on the 364-day bill recorded the least decline this week, down by 177 bps to widen its year-to-date (YTD) decline to 9.46%. It cleared at 27.2996% this week, down from 29.0745% posted last week.

Week-on-Week Change

Tenor	Previous	Current	w-o-w Change	w-o-w Change (%)	Year-to-Date
91 – Day	26.8591%	24.4786%	-2.38	-8.86%	-13.17%
182 – Day	27.8057%	25.3874%	-2.42	-8.70%	-12.21%
364 – Day	29.0745%	27.2996%	-1.77	-6.10%	-9.46%

Auction results of tender 1943 showed investors renewing their confidence in the new government as they once again swamped the government’s short-term securities in an attempt to lock in on the relatively higher real returns before yields decline any further. The government this week received in excess of 165.0% of its intended target.

A total of GHS 20,499.73 million worth of bids were tendered for the 91, 182, and 364 tenors against the government’s target amount of GHS 7,729.00 million. The government in turn accepted 57.32%, 28.62%, and 48.93% of the GHS 7,385.10 million, GHS 5,003.81 million, and GHS 8,110.82 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 6,493.00 million from 91-day, 182-day, and 364-day bills to meet GHS 5,570 million worth of maturing papers due next week.