Investor appetite on T-bills grows

Friday January 25 2019

The twin towers that house the Bank of

The twin towers that house the Bank of Tanzania. PHOTO | FILE 

By Halili Letea @hletea hletea@tz.nationmedia.com

Dar es Salaam. Investor’s appetite on short term government debt instruments has continued to remain high, after Treasury Bills floated by the Bank of Tanzania (BoT) on Wednesday ended up being oversubscribed.

This is being experienced at a time when the government has continued to increase yields for six and one-year maturities.

This is the third consecutive time the T-bills are being oversubscribed.

During the Wednesday float, the Central Bank slightly increased weighted average yield to 8.69 per cent compared with 8.38 per cent recorded during the previous auction held on January 9, this year.

Auction summary shows that a total of 141 bids, valued at Sh187.41 billion, were tendered against the offered Sh141 billion, which is an oversubscription of Sh46.41 billion.

At the end of auction, the Central Bank accepted only 92 bids valued at Sh148.07 billion, which was more than the offered amount.

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Six months and one year maturity bills continue to remain most attractive due to higher yields.

The results show that yields for one year maturity increased to 9.32 per cent this week, compared with 9.35 per cent on the previous auction held on January 09, 2019 while six-month bills marginally decreased to 5.27 per cent compared with 5.28 per cent respectively.