Tbills oversubscribed as investors’ appetite soars

Tbills oversubscribed as investors’ appetite soars

Sat Feb 13, 2016

The Bank of Tanzania (BoT) summary for the one year treasury bills auctioned on Wednesday shows that it attracted bids worth 219.78bn/- against 133bn/- offered to the market for bidding.

However, the total amount tendered declined to 219.78bn/- compared to 359.58bn/- of the previous session although at the end the government retained 177.02bn/- as successful amount.

Some of the investors in the one year treasury bills are namely commercial banks, pension funds, insurance companies and some microfinance institutions. The two tenures, 364 and 182 days have continued to be the most attractive after contributing about 99 per cent of the total bids while 91 and 35 shared less than one per cent.

The 364 and 182 days offer attracted bids worth 142.75bn/- and 76.87bn/- respectively against 77bn/- and 50bn/- offered to the market for bidding while the 91 days offer attracted 150m/-.

Yield rates for the 364 and 182 days offer were 18.97 per cent and 17.79 per cent respectively compared to 18.80 per cent and 17.67 per cent of the previous session held two weeks ago. The 91 days tenure interest rate was 8.63 per cent compared to 8.84 per cent.

The highest and lowest bid/100 for the 364 and 182 days offers were 91.50/ 70.00 and 93.23/ 90.51 respectively while for the 91 and 35 days tenor had 98.00/ 97.68. The minimum successful price/100 for the 364, 182 and 91 days offer were 83.37, 90.51 and 97.68 respectively.

The weighed average price for successful bid for the 364 tenure was 84.09, the 182 days offer was 91.85 and 91 days offer was 97.89.

SOURCE: DAILY NEWS

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