Dar es Salaam. The Treasury Bills floated on Wednesday June 26, 2019 by the Bank of Tanzania (BoT) attracted low investor turnout.
The auction results has shown that the float was undersubscribed by Sh60.8 billion whereby a total of Sh80.5 billion were tendered against offered Sh141.4 billion.
This is different from the previous auction held on June 12 whereby a total of Sh188 billion were tendered against offered Sh141 billion. At the end of auction, Sh159 billion were successful, which was more than what the central bank wanted to raise.
A total of 91 bids were recorded during the auction but the end only 72 bids valued Sh70.5 billion were accepted.
Many bids were recorded on one year maturity which recorded 45 bids valued Sh72.6 billion against offered Sh104 billion but only 44 bids valued Sh62 billion were successful while six months attracted six bids valued Sh6.1 billion which were all successful.
The auction results show that 35-days and 91-days maturity attracted three bids each valued Sh100 million, of which all were successful.
The results shows that the weighted average yields for the float decreased to 8.59 per cent from 8.79 per cent recorded during the previous auction held on June 12 this year.
Yields for one year maturity slightly went up to 9.05 per cent from 9.03 per cent while the six months maturity also increased to 5.19 per cent from 5.13 per cent respectively.
The three months maturity was also increased to 4.39 per cent from 4.28 per cent while the 35-days maturity to 3.78 per cent from 3.38 per cent respectively.
The report shows that one year maturity has remained the major targets for investors in financial markets.