The government concluded 2024 with a 9% excess demand during the Treasury bills auction, exceeding its target.

According to data published by the Bank of Ghana, the auction, which had targeted GH¢4.3 billion, secured a total of GH¢4.6 billion, surpassing the target by GH¢383 million.

The data also indicates that the 91-day Treasury bill was the most sought after, attracting bids worth GH¢3.8 billion, while the 182-day bill contributed GH¢628.16 million, accounting for 13.5% of the total bids.

The 364-day bill represented 3.36% of the total, bringing in GH¢179.37 million. However, this modest oversubscription was accompanied by increased Treasury bill rates.

Interest rates for the 91-day bill and 182-day bill rose from 27.85% to 28.03% and from 28.68% to 28.88%, respectively. The 364-day bill also increased from 29.97% to 30.07%.

The results highlight a mix of investor optimism and caution, with higher yields driving demand despite the rising cost of borrowing.

As such, the year ends on a notable high for the government's short-term debt market, laying a solid foundation for 2025.

President-elect John Mahama has pledged to restore fiscal discipline moving forward.

FKA/MA

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