Treasury
Bills auction yesterday’s was oversubscribed by 69.2 per cent, signifying the
easing of the tight money stance the economy experience since last October.
The
T-bill was not only oversubscribed but its average rate went down by 1.3 per
cent to 17 per cent with central bank accepting 95.52 per cent of the amount
offered.
NMB
says in its e-Market report of yesterday that the trend is “a sign showing
easing of the liquidity stance with overnight rates decreasing from record
highs”.
Bank
of Tanzania (BoT) wanted to raise 100bn/- but the market offered 169.89bn/. At the
closure of the auction the central bank accepted only 95.52bn/-.
“As
expected most players channeled their bids in 365 days whereby seen 107 bids therein,
and its only tenor seen to be oversubscribed big time,” Standard Charted Bank
said its daily market report.
The
amount tendered in 365 days was 90.52bn/- billion while only 35 billion offered.
The cut-off for 365 days has declined by 164 basic points (bps) from 20.64 per
cent to 19 per cent.
| The results of Jan 18 auction: source BoT | ||
“We
expect BoT to come sale on off tender to curb the shortfall,” the banks said.
The
last T-bills auctioned in December 2011 were under subscribed despite attractive
package of high interest rates. The one year T-Bill was under subscribed with
government accepting bids worth only 13.5bn/- out of 70.6bn/- of the total
amount tendered.
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