Monday, December 7, 2015

Treasury bills oversubscribed as liquidity eases

DAILY NEWS Reporter
Business
STABLE interest rates and liquidity in the circulation has impacted positively on the 12- month treasury bills resulting into an over subscription.
The BoT auction summary shows that the total amount tendered increased to 196.25bn/- compared to 170.34bn/- of the previous session held two weeks ago.

Yield rates across all tenures declined slightly to 18.86 per cent from 18.87 per cent of the previous session for the 364 days offer, 16.97 per cent from 16.92 per cent for the 182 days, 9.35 per cent from 10.06 per cent for the 91 days.
Rates for the 35 days offer 7.40 per cent. Some of the key investors in the treasury bills are commercial banks, pension funds, insurance firms and few microfinance institutions.
In the 364 days tenure fetched a total of 147.92bn/- against 40bn/- offered for tendering. The 182 days offer attracted bids worth 47.82bn/- compared to 25bn/- offered to the market for tendering.
For the 91 days offer, 452.60m/- was tendered 9bn/- put to the market for tendering while the 35 days a total of 50.35m/- compared to 1bn/- offered for auction. Despite the over subscription of the one year Treasury bill instrument, the government at the end retained 119.66bn/- as successful amount.
The highest and lowest bid/100 for the 364 and 182 days offers were 86.56/81.25 and 92.45/90.95 respectively while for the 91 and 35 days tenor had 97.87/96.90 and 99.30/99.30 respectively.

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