Tanzania's president John Magufuli delivers a speech
- DAILY NEWS Reporter
THE five-year maturity bonds remained attractive despite the end of year obligations that investors have to fulfil, signalling improved liquidity in the market.
According to the National Microfinance
Bank (NMB) e-market report, the appetite for overnight funding was seen
slightly picking up as investors settled their T-bond auction.
In the sale of five-year bond, the
government quest to raise 49.60bn/- through the instrument was achieved
and surpassed after receiving bids worth 97.86bn/- although in the end
only 49.60bn/- was successful.
The funds raised from the sale of the
long-term government notes will finance development projects, including
road and railway infrastructures aimed not only at cutting down cost of
transport but speeding up economic growth.
The weighted average price for
successful bids was 74.16 while the minimum successful price/100 was
69.79. Of the 70 bids received, 26 emerged successful. The highest and
lowest bid/100 were 77.11 and 50.53, respectively.
The weighted average yield to maturity
decreased to 17.06 per cent compared to 18.79 per cent of the five-year
bond auctioned in February.
The weighted average coupon yield rose
to 12.37 per cent compared to 13.17 per cent of the other session. Some
of the key investors in government securities include pension funds,
insurance firms, some microfinance companies and few commercial banks
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