Following a month of subdued demand for Treasury bills in the lead-up to Ghana’s pivotal presidential election on December 7, the country’s first post-election T-Bills auction has marked a notable rebound, recording an oversubscription of GHC 1.05 billion.

In Auction 1933, the government sought to raise GHC 6.848 billion from the treasury market. At the close of the auction, it received and accepted GHC 6.74 billion in total bids—comprising GHC 951.67 million in 91-day bills, GHC 508.15 million in 182-day bills, and GHC 5.28 billion in 364-day bills. The total bids amounted to GHC 7.9 billion, translating into an oversubscription rate of 15.37%.

Despite this strong investor interest, the positive uptick in demand has not yet translated into a significant easing of debt costs. Inflation continues to cast a shadow over the market, with Ghana’s year-on-year inflation rate rising to 23.0% in November, marking the third consecutive month of increase. The yields on the 91, 182, and 364-day bills averaged 27.77%, 28.49%, and 29.94%, respectively—levels not seen since February of this year.

While the surge in demand signals a potential positive shift in investor confidence, the ongoing spike in interest rates underscores the pressing economic challenges that will be at the forefront of Ghana’s incoming administration.

Despite the oversubscription, the government has set a more cautious target of GHC 5.463 billion for the next auction (1934).