Seven-year bond over-subscribed four times

Money traders prediction today hold true as the seven-year treasury bond attracted hefty investments far above the amount the Bank of Tanzania (BoT) expected to raise.

The bond fetched 104.4bn/- against merely 25bn/- placed for tendering at an interest rate was set at 13.4 per cent unlike its sister five-year bond 17.05 per cent auctioned fortnight ago.     

Standard Chartered Bank predicted over-subscription at a cut-over price of 16 per cent due to the fact that the T-bill was heavily tendered in the previous market.

“Market keenly watching out for the seven-year bond auction scheduled for today.

“Given current market condition and investor appetite it is likely that the yield will move downwards if not flattish,” the bank said in its daily market commentary.

Over 60 per cent of the key players of long term maturities are commercial banks, with only five per cent as retail investors. Others are pension funds, insurance companies and a few micro-finance institutions.

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