After registering poor subscriptions in the past three auctions, the first 15 years treasury bonds auction this year has started on a high note resulting into over subscriptions.
According to Bank of Tanzania (BoT), the 15 years treasury bonds held in August, October and December received low investors’ appetite largely due to liquidity squeeze, ending up in under subscription.
The BoT auction summary conducted on Wednesday shows that a total of 42bn/- was offered to the market for bidding and managed to attract bids worth 70.35bn/-.
Also a total of 67 numbers of bids were received but only 41 emerged successful. At the end of the session, the government retained 42bn/- as successful amount despite the over subscription.
The highest and lowest bids/100 was 85.69 and 63.11 respectively while the minimum successful price/100 was 76.06. On the other hand, the weighted average price for successful bids was 78.89.
Similarly, the 15 years treasury bonds saw its weighted average yield to maturity slowed to 17.52 per cent compared to 17.90 per cent of the session held on October last year.
The weighted average coupon yield declined to 17.11 per cent compared to 17.47 per cent. The 15 years treasury bonds is one of the debt security instrument used to raise money from the public for long term investment purposes in key areas like infrastructure development.
Pension funds, commercial banks, insurance companies and a few microfinance institutions are some of the key investors in the long-term government papers.
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According to Bank of Tanzania (BoT), the 15 years treasury bonds held in August, October and December received low investors’ appetite largely due to liquidity squeeze, ending up in under subscription.
The BoT auction summary conducted on Wednesday shows that a total of 42bn/- was offered to the market for bidding and managed to attract bids worth 70.35bn/-.
Also a total of 67 numbers of bids were received but only 41 emerged successful. At the end of the session, the government retained 42bn/- as successful amount despite the over subscription.
The highest and lowest bids/100 was 85.69 and 63.11 respectively while the minimum successful price/100 was 76.06. On the other hand, the weighted average price for successful bids was 78.89.
Similarly, the 15 years treasury bonds saw its weighted average yield to maturity slowed to 17.52 per cent compared to 17.90 per cent of the session held on October last year.
The weighted average coupon yield declined to 17.11 per cent compared to 17.47 per cent. The 15 years treasury bonds is one of the debt security instrument used to raise money from the public for long term investment purposes in key areas like infrastructure development.
Pension funds, commercial banks, insurance companies and a few microfinance institutions are some of the key investors in the long-term government papers.
Source: Daily News, reported from Dar es Salaam, Tanzania
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