Despite the falling yield rates, the 12
months treasury bills maturities have continued to be attractive to
investors, making the debt instrument to be oversubscribed by 50.92 per
cent.
The declining annual headline inflation rate that
reached 10.4 per cent in February, this year is one of the reasons
behind the positive performance of the one year treasury bills
maturities.
According to the National Bureau of
Statistics (NBS), the decrease of annual headline inflation rate for the
month of February explains that the speed of price increase for
commodities in the period under review has decreased compared to the
pace recorded in the preceding month.
The Bank of Tanzania (BoT) auction
results show that the average interest rates dipped to 12.97 per cent
compared 13.28 per cent offered in the previous session.
A total of
135bn/- was offered for bidding, but the market saw the amount tendered
jumped to 203.74bn/-, although a sum of 124.19bn/- became successful, an
indication that some investors bid below the price offered.
Interest rate for the 364-day tenor
dipped to 13.67 per cent from 14.15 per cent of the previous session but
didn’t deter buyers from oversubscribing by 131.88bn/- against the only
45bn/- offered in the market.
Likewise, rate of return for 182- day
offer fell to 13.14 per cent compared to 13.57 per cent of the previous
market and the total amount tendered declined to 44.28bn/- against
45bn/- offered into the market for tendering.
Also, yield rate for the 91 days offer
fell to 11.64 per cent compared to 11.98 per cent of the previous
session and the total amount became under subscribed to 25.57bn/-
against 40bn/- offered in the market.
For the 35 days tenor, only 2bn/-
was the total amount against 5bn/- offered for tendering at 6.55 per
cent yield rate compared to 6.75 per cent of the previous market.
Source: The Daily News, www.dailynews.co.tz,reported from Dar es Salaam
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