Treasury bills oversubscribed by 19.75% after Mahama’s election victory

Ghana has just recorded a remarkable 19.75% oversubscription in treasury bills, raising a whopping GH¢8.20 billion against a target of GH¢6.85 billion. This surge in demand for short-term government securities comes just a week after President-elect Mahama's victory in the December 7 general elections, reflecting renewed investor confidence in Ghana's economic stability .

The breakdown of the treasury bill performance is quite impressive. 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.

The yields on these bills also saw significant increases. The 91-day T-bill yield rose by 17 basis points to 27.77%, while the 182-day T-bill yield climbed to 28.49% from 28.32% the previous week. The 364-day T-bill yield edged up slightly to 29.94%, an increase of 3 basis points.

This oversubscription is a positive economic indicator, demonstrating strong local and international investor appetite for Ghana's short-term debt instruments. 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 .