T-bills rates down, subscription soars

Standard Chartered Bank HQ in Dar

The Bank of Tanzania yesterday lowered all Treasury-Bill rates but the move could not altar bidders’ appetite to tender the government’s short-term instrument.

The results showed that the market tendered 440.32bn/- against 100bn/- that was on offer.

Standard Chartered Bank said yesterday: “all yields moved downwards.”

The biggest move was decreasing by 294 basic points (bps) and 314bps registered on the 35 and 364 days paper respectively.

The bank said that the results serve to show the Bank of Tanzania (BoT) or rather government demand for shillings is getting lower to inevitable increasing market liquidity.

And should the trend continues, StanChart said …it”will put downward pressure on the curve especially should the T bill auction size be maintained at 100bn/-.”

BoT Twin Tower HQ in Dar
On average, the 364 bill yield rate dipped to 15.30 per cent from 18.44 per cent of the previous market, and 182 bill rate dropped to 16.21 per cent from 17.70 per cent.

The 35 bill and 91 bill yield rate went down slightly from 10.67 per cent and 13.67 per cent to 7.73 per cent and 13.18 per cent respectively.

Since the beginning of the year the market has seen improved performances on trading of government securities compared to the preceding period when the T-Bills performed poorly.

In the previous T-bill bidders offered a total of 169bn/- against the 100bn/- floated, but the central bank accepted only 95.5bn/- as successful bids. Late last December the auction attracted only 71bn/- for 100bn/- T-bill.

Meanwhile, the Tanzanian shilling gained slight ground to 1,603/-against the greenback yesterday on the back of some inflows in the interbank and corporate markets. 
Sources: tzexchange.blogspot.com 
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