Treasury bill markets across Africa remained largely stable last week, with short-term yields holding firm in most economies even as Ghana recorded a strong resurgence in fixed-income activity and Nigeria kept its benchmark policy rate unchanged at 27 percent to confront persistent inflation.
Ghana’s bond market staged a significant recovery, with secondary-market turnover jumping to GH¢1.6 billion (≈ US$114 million) from GH¢37.37 million (≈ US$2.7 million) the previous week. Trading was concentrated in the 2031–2034 maturities, which made up 77 percent of total volumes at a weighted-average yield of 15.68 percent. The rebound followed improved liquidity conditions after a 350-basis-point policy rate cut to 18 percent and renewed investor confidence ahead of an expected IMF disbursement.
Activity in the primary market also strengthened. The latest Treasury-bill auction pulled in GH¢6.03 billion (≈ US$431 million) in bids, with authorities accepting GH¢5.78 billion (≈ US$413 million) against a trimmed target of GH¢2.86 billion (≈ US$204 million). Yields on the 91-day and 182-day bills declined to 11.05 percent and 12.43 percent, respectively, while the 364-day bill inched up to 13.09 percent. Analysts linked the performance to lower OMO returns and reduced issuance targets, which pushed liquidity toward government securities.
Across East and Southern Africa, short-term yields were largely unchanged. Kenya, Malawi, Rwanda, Tanzania, Uganda and Namibia saw no weekly movements, reflecting muted volatility in their money markets. Egypt, still grappling with elevated inflation of 12.5 percent, recorded slight increases, with 91-day yields rising to 26.48 percent.
In Nigeria, the Monetary Policy Committee opted to maintain the benchmark rate at 27 percent at its 303rd meeting, citing sustained inflationary pressures driven by food and energy costs. The central bank also narrowed the Standing Facilities Corridor to strengthen policy transmission and tighten control over system liquidity. Market watchers expect Nigeria to hold its restrictive stance into early 2026 as authorities prioritize price stability and exchange-rate management.
Investors across the region are expected to remain active but cautious, balancing improved liquidity in select markets against ongoing inflation and currency risks.
