Government has recorded a remarkable 19.75% oversubscription in treasury bills, raising GH¢8.20 billion against a target of GH¢6.85 billion, according to the Bank of Ghana’s auction results.
The surge in demand for short-term government securities comes just a week after John Dramani Mahama’s victory in the December 7 general elections, reflecting renewed investor confidence in the nation’s economic stability.
Breakdown of Treasury Bill Performance
The 91-day T-bill emerged as the most sought-after instrument, securing GH¢6.74 billion, which accounted for a significant 82.1% of the total bids. The 182-day T-bill followed with GH¢951.67 million, while the 364-day T-bill recorded GH¢508.15 million.
Interest rates on these instruments continued their upward trend:
91-day T-bill: Yield rose by 17 basis points to 27.77%.
182-day T-bill: Yield climbed to 28.49% from 28.32% the previous week.
364-day T-bill: Yield edged up slightly to 29.94%, an increase of 3 basis points.
The oversubscription indicates heightened trust in the government’s fiscal instruments and optimism about sound economic management under the incoming Mahama administration.
This auction result serves as a positive economic indicator, demonstrating strong local and international investor appetite for Ghana’s short-term debt instruments.
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Implications for the Mahama administration
As the Mahama administration prepares to take over, this treasury bill performance signals a strong start for economic governance. The incoming government faces the critical task of building on this momentum, stabilising the economy, and fostering investor trust through prudent fiscal policies.
With interest rates nearing the 30% mark, Ghana’s short-term securities remain an attractive option for investors.
The post Treasury bills oversubscribed by 19.75% after Mahama’s election victory first appeared on 3News.
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