Tanzania: Treasury bills oversubscribed as investors’ appetite remains high

Slight liquidity tightness in the circulation did not affect the performance of the one year treasury bills that resulted into over subscription.

According to treasury bills auction held by the Bank of Tanzania (BoT) last week, the total amount tendered jumped to 195.70bn/- somewhat down compared to 196.25bn/- tendered in the previous session. 

In the local money markets, liquidity was slightly tight last week as overnight rates ticks to 8 per cent, the NMB e-market report has stated.

With the exception of the 182 days offer, yield rate for the remaining tenures declined slightly. Yield rate for the 182 days tenure increased to 17.10 compared to 16.97 per cent. The 91 days offer declined to 9.29 per cent from 9.35 per cent in the other period.

The 364 days tenure has its interest rates decline slightly to 18.65 per cent compared to 18.86 per cent. Some of the key investors in the treasury bills are commercial banks, pension funds, insurance firms and few microfinance institutions.

The 364 days tenure fetched a total of 137.09bn/- against 40bn/- offered for tendering. The 182 days offer attracted bids worth 57.52bn/- compared to 35bn/- sought to be mobilised.

For the 91 days offer, 1.08m/- was tendered from 7bn/- put to the market for tendering. Despite the over subscription of the one year Treasury bill instrument, the government at the end retained 164.92bn/- as successful amount.

The highest and lowest bid/100 for the 364 and 182 days offers were 86.00/82.34 and 92.90/91.35 respectively while for the 91 and 35 days tenor had 97.75/97.58.
Source: Daily News, reported from Dar es Salaam,Tanzania
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