Monday, February 1, 2016

Treasury bills oversubscribed

DAILY NEWS Reporter
DESPITE month end tax and salary obligations, active investors’ participation in the treasury bills was witnessed at the auction that attracted bids for over three times over subscription.

The Bank of Tanzania (BoT) summary for the one year treasury bills auctioned last week shows an over subscription by 226.5bn/- with yields across all tenures remaining almost flat.
The government offered 133bn/- for bidding but it attracted bids worth 359.58bn/- although in the end only 262.12bn/- was retained as successful amount. Major investors in the one year treasury bills are commercial banks, pension funds, insurance companies and some microfinance institutions.
The two tenures, 364 and 182 days contributed about 99 per cent of the total bids while 91 and 35 had less one per cent.
The 364 and 182 days offer attracted bids worth 270.20bn/- and 89.25bn/- respectively against 75bn/- and 50bn/- offered to the market for bidding while the 91 days offer attracted 122.44m/-.
Yield rates for the 364 and 182 days offer was 18.80 per cent and 17.67 per cent compared to 18.80 per cent and 17.67 per cent respectively of the previous session held two weeks ago.
The 91 days tenure interest rate was 8.84 per cent. The highest and lowest bid/100 for the 364 and 182 days offers were 85.45/82.01 and 92.50/ 91.35 respectively while for the 91 and 35 days tenor had 98.00/ 97.71.
The minimum successful price/100 for the 364, 182 and 91 days offer were 83.20, 91.61 and 97.71 respectively. The weighed average price for successful bid for the 364 tenure was 84.21, the 182 days offer was 91.90 and 91 days offer was 97.84

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