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| BoT HQ in Dar |
The
Bank of Tanzania is in the market with bills offer on Wednesday but the auction
might see a low turnout as it coincides with the first quarter tax obligation.
“We
expect the issues to see low turnout due to the timing as the first quarter tax
outflows will coincide with the auction,” Standard Chartered bank said.
The
amount on sale is 100bn/- split across buckets and amount in brackets as
follows: 35Days (5bn/-), 91Days (30bn/-), 182Days (30bn/-) and 364Days (35bn/-).
Meanwhile,
the cash market reported very low amount traded 7.15bn/- with overnight rate
easing to 17 per cent from the previous close at 20 per cent levels.
“We
expect the month end tax obligations to see an increased activity on the interbank
with big banks expected to receive favorable prices compared to the small banks,”
the bank said.
The
fortnight ago auction was undersubscribed by 5.6 per cent. BoT had offered
100bn/- for sale and investors tendered a total of 94.4bn/- only. The central
bank accepted 84.5bn/- from 57 out of 66 bids. The most affected maturity was
that of 35 days which contained 5bn/-on for auction, as no single bid appeared
for the category.
In
the last auction of February 29th this year, the central bank accepted
116.6bn/- while it had offered 100bn/- for sale. The BoT accepted more than it
offered as the cost of borrowing for government securities are in a downward
trend.
Source:tzexchange.blogspot.com
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