Ghana’s government has experienced a notable 19.75% oversubscription in its latest Treasury bill auction, raising GH¢8.2 billion, surpassing the targeted GH¢6.85 billion, according to the Bank of Ghana’s results.
This surge in demand for short-term government debt comes just one week after John Dramani Mahama’s victory in the December 7 elections, indicating a rebound in investor confidence amid expectations of stable economic governance.
The 91-day Treasury bill was the most sought-after, attracting GH¢6.74 billion, or 82.1% of total bids. The 182-day bill raised GH¢951.67 million, while the 364-day bill garnered GH¢508.15 million. Yields across these instruments continued their upward trajectory, with the 91-day bill rising to 27.77%, the 182-day bill climbing to 28.49%, and the 364-day bill edging up to 29.94%.
This strong oversubscription reflects renewed trust in Ghana’s fiscal policies and the prospects for sound economic management under the incoming Mahama administration. As the new government prepares to take office, the results of this auction signal robust investor interest and provide a solid foundation for future fiscal policy. With interest rates approaching 30%, short-term Treasury bills remain a compelling option for both local and international investors.
