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Government paper market shaky: BoT

What you need to know:

In Monthly Economic Review (MER) for March, BoT says in February the Bank conducted two auctions of Treasury bills at fortnightly intervals.

Government paper market shaky: BoT

Dar es Salaam. The overall weighted average yield in treasury bills fell to an average of 15.02 percent last February from 15.27 percent recorded a year earlier, Bank of Tanzania (BoT) report says.

In Monthly Economic Review (MER) for March, BoT says in February the Bank conducted two auctions of Treasury bills at fortnightly intervals.

As usual, these auctions were held to assist the government in its fiscal operations and monetary policy purposes.

“The combined tender size for the auctions was Sh280 billion compared with Sh278.3 billion in

January 2017. The value of bids received amounted to Sh831.7 billion compared with Sh757.8 billion in January 2017.

According to BoT, successful bids amounted to Sh479.1 billion compared with Sh609.3 billion recorded a month earlier.

On the other hand, in February 2017, 5-year and 15-year Treasury bonds worth Sh105.0 billion and Sh70.9 billion, were offered for government fiscal operations.

Bids for 5-year bond amounted to Sh96.9 billion, while that of 15-year bond was Sh129.3 billion; implying that 5-year bond was undersubscribed by Sh8.1 billion, while 15-year bond was oversubscribed by Sh58.4 billion.

Successful bids amounted to Sh69.7 billion for 5-year bond and Sh87.6 billion for 15-year bond.