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| BoT HQ in Dar |
The 10 year Treasury Bonds auctioned last week by the Bank of
Tanzania (BoT) were undersubscribed by two per cent with the 15.82
interest rate per cent slightly higher than 15.28 per cent of the
previous tender.
“The yield for 10 year rose significantly by 54
basis points to 15.82 per cent with cut-off coming at 17.52 per cent.
The auction was slightly undersubscribed with bids totalling 54bn/-
being tendered against the 55bn/- offer,” stated the Standard Chartered
Bank in its market commentary.
In the 10-year tender, only 16 out of 19
bids received emerged successful, an indication that some investors
tendered below the price offered at the market by the Bank.
“With a two per cent under subscription, weighted Average Yield to
maturity was 15.82 per cent slightly higher than the last 10-Year
Treasury bond’s auction, which was at 15.28 per cent,” the Tanzania
Securities weekly market commentary stated.
According to
the BoT report, the auction recorded weighted average price of 78.37
with a minimum price of 71.82 and maximum of 81.41.
Over 60 per cent of the key players of long term maturities are
commercial banks, with only five per cent as retail investors. Others
are pension funds, insurance companies and a few micro-finance
institutions.
Source: The Daily News, www.dailynews.co.tz, reported by Sebastian Mrindoko in Dar es Salaam
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