Bank of Tanzania boosts T-Bill yields marginally

Dar es Salaam. Investors’ appetite for short-term government securities continue to be high as the Bank of Tanzania (BoT) marginally increased yields for Treasury Bills.

The BoT market report shows that the T-bill floated on Wednesday was oversubscribed, signaling that investors were more interested in short-term risk-free securities.

According to the auction summary, a total of 138 bids valued Sh285.5 billion were tendered against Sh141 billion offered, but only 92 bids valued at Sh141 billion were successful, which is equivalent to the amount offered.

However, the oversubscription for the Wednesday’s float was lower than Sh234.79 billion recorded during the previous auction held on August 21.

Wednesday’s auction results showed that weighted average yields rose to 7.23 per cent from 7.15 per cent during the previous float held on September 5, this year. The auction summary shows that many bids (116 bids) were received for the one-year maturity bill due to high yield, while the other three bills received a total of 22 bids.

Yields for six months and one year bills slightly fell to 5.03 per cent and 7.90 per cent on Wednesday float compare with 5.10 per cent and 8.07 per cent on the previous auction respectively.

Yields for three months maturity bill marginally increased to 2.99 per cent compare with 2.98 per cent logged on the previous float, while that of one months stagnated at 2.73 per cent.

The auction summary shows that six months and one year bills were oversubscribed with one year bill received a highest oversubscription of Sh102.69 billion, while one and three months bill were exactly tendered.