Over 370bn/- raised through treasury bills

The Bank of Tanzania (BoT) auction summary shows that the instrument attracted bids worth 370.44bn/- in the auction held last week compared to 137bn/- offered to the market although at the end 273.98bn/- became the successful amount. The positive performance is a sign of the easing tight liquidity in the market that hit capital and money markets in the recent days.

Most investors reduced investment on long term, particularly bonds to fulfill year end periods to fulfill social and quarterly tax obligations. However, the situation did not affect treasury bills that continued to attract massive bids.

Yield rates declined slightly across all tenures, but did not affect investors’ appetite on the treasury bills. Major investors in the one year treasury bills are commercial banks, pension funds, insurance companies and some micro-finance institutions.

The two tenures 364 and 182 days contributed 98 per cent of the total bids during the trading session. The 364 and 182 days offer attracted bids worth 239.31bn/- and 128.58bn/-respectively against 85bn/-and 50bn/- offered to the market for bidding.

Yield rates for the 364 and 182 days offer were 15.78 per cent and 14.53 per cent from 15.79 per cent and 14.54 per cent of the previous session held two weeks ago. The yield rates for the 91 and 35 days tenure were 7.14 per cent and 6.81 per cent in the 24 months treasury note.

The highest and lowest bid/100 for the 364 and 182 days offers were 86.65/ 84.74 and 93.40/ 91.76 respectively while for the 91 and 35 days tenor had 98.25/ 96.63 and 99.36/ 99.35. The minimum successful price/100 for the 364, 182 and 91 days offer were 86.28, 93.07, 98.25 and 99.35 respectively.

The weighed average price for successful bid for the 364 tenure was 86.40, the 182 days offer was 93.24, 91 days offer was 98.25 and 99.35 for the 35 days offer.

SOURCE: DAILY NEWS

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