The treasury market is expected to record another oversubscription in the coming auction.

According to analysts, this is due to the smaller auction target.

“We anticipate activity to moderate this week as the festive period tempers investor participation, but the smaller auction target should still attract sufficient bids, making another oversubscription likely”, said Databank Research.

The government plans to borrow GH¢3.31 billion through the issuance of 91-day, 182-day, and 364-day bills to settle maturing bills of GH¢3.22 billion

Last week's T-bill auction was heavily oversubscribed by 47.73%, relative to the GH¢3.79 billion target.

Total bids totalled GH¢5.60 billion, with the government accepting GH¢5.38 billion. This translated to a target cover ratio of 1.42 complemented by a bid-to-cover ratio of 1.04.

The yields on the short-term instruments eased modestly across all maturities.

The 91-day bill went down by 2.0 basis points to 11.09%, while the 182-day declined to 12.44% (-11 basis points). The 364-day softened to 12.91% (- 6.0 basis points).