T-bills auction closes 2016 on strong note

Most investors slashed investment on capital and money markets on year end periods to fulfill social and quarterly tax obligations.

Tanzania (BoT) auction summary shows that a total of 138.5bn/- was offered for tendering. Yield rates increased slightly in some tenure and in others it registered decline. The two tenures 364 and 182 days contributed 100 per cent of the total bids while 91 and 35 attracted no bids.

The 364 and 182 days offer attracted bids worth 75.43bn/- and 68.67bn/- respectively against 85bn/-and 51bn/- offered to the market for bidding. Yield rates for the 364 and 182 days offer were 15.79 per cent and 14.54 per cent compared to 15.86 per cent and 14.95 per cent of the previous session held two weeks ago.

The highest and lowest bid/100 for the 364 and 182 days offers were 87.20/ 85.00 and 93.47/ 92.61 respectively while for the 91 and 35 days tenor had 93.47/ 92.61 and 98.30/ 98.26. The minimum successful price/100 for the 364, 182 and 91 days offer were 86.22, 92.61, 98.26 and 99.35 respectively.

The weighed average price for successful bid for the 364 tenure was 86.37, the 182 days offer was 93.24, 91 days offer was 98.26 and 99.35. Major investors in the oneyear treasury bills are commercial banks, pension funds, insurance companies and some micro-finance institutions.

SOURCE: DAILY NEWS

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