BoT HQ |
The appetite for the Bank of Tanzania’s ten-year Treasury
bond last week was high as investors craved for the risk-free debt instruments,
according to market data.
“High liquidity among investors including pension funds and
commercial banks led to an oversubscription,” the Rasilimali Limited general
manager, Mr Arphaxad Masambu, told The Citizen in Dar es Salaam.
The BoT summary report for last week’s auction showed that
the ten-year bond was oversubscribed by 17bn/- at the weighted average
yield to maturity of 14.2758 per cent.
According to Mr Masambu, the absence of an initial public
offering in the market means that every serious investor is eyeing the
risk-free securities in which to inject their money – the Treasury bond seems
to provide the answer, thus resulting in oversubscription.
He also said there were no corporate bonds on offer yet,
whose yields could compete with the one of the government bonds, and because of
this fact, there was oversubscription.
Investors were left with only one choice there was of
injecting their money.
Source: The Citizen, www.thecitizen.co.tz,
reported by Vainess Mollel in Dar es Salaam
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