Lowered yields T-Bills get subscribed by over 170pc

Friday August 9 2019

Bank of Tanzania headquarters in Dar es Salaam.

Bank of Tanzania headquarters in Dar es Salaam. Photo |File. 

By The Citizen Reporter @TheCitizenTZ news@tz.nationmedia.com

Dar es Salaam. Lowered yields Treasury Bills floated by the Bank of Tanzania (BoT) on Wednesday this week was oversubscribed by more than 170 per cent, which indicated high investors’ appetite on government debt papers.

The auction results show that a total of 108 bids valued Sh294 billion were tendered against the offered Sh107.2 billion.

Investors in government debt instruments include commercial banks, pension funds, private individuals, investment funds and insurance companies.

However, at the end of the auction, only 30 bids valued Sh103.7 billion were accepted.

The average weighted average yield per annum was lowered to 7.85 per cent from 8.06 per cent recorded during the previous auction held on July 24 this year.

Yields for 35-day maturity was zero rated from previously 3.72 per cent recorded on July 24. However, the yield for three months maturity was increased during the period to 4.38 per cent from 4.34 per cent.

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The auction results show that yields for six-month maturity lowered to 5.19 per cent from 5.23 per cent while the one year maturity also lowered to 7.91 per cent from 8.16 per cent.

Many bids were recorded on one year maturity as the report shows that a total of 102 bids valued Sh292 billion were received but only 24 bids valued Sh101 were successful.

The six-month maturity received 4 bids valued Sh2 billion against offered Sh3 billion and all were successful at the end of auction.

91-day maturity received 2 bids valued Sh200 million against offered Sh1.7 billion of which were all successful while 35-day maturity received no bid against offered Sh1 billion.

The report shows that during the previous auction held on July 24, a total of 126 bids valued Sh275 billion were recorded against Sh107 billion offered but only 38 bids valued Sh104.4 billion were successful.