AS liquidity tightness eases, investors’ demand for the treasury bills has improved to register an over-subscription after weeks of poor performance. According to the NMB e-markets report, liquidity tightness slightly improved as banks are now willing to rollover maturities.
The overnights rates are still at 14 per
cent to 16 per cent levels. In the short term government paper
auctioned by the Bank of Tanzania (BoT) last week shows that total bids
of 141.62bn/- were tendered compared to 138bn/- offered to the market
for bidding and at the 116.31bn/-became successful amount.
Yield rates declined slightly across all
tenures but did not affect the performance of the short term government
note to attract more bids, the situation implying the easing liquidity
squeeze in the market. The two tenures 364 and 182 days contributed
about 99 per cent of the total bids while 91 and 35 shared less than one
per cent.
The 364 and 182 days offer attracted
bids worth 84.42bn/- and 57.04bn/- respectively against 80bn/-and 50bn/-
offered to the market for bidding while the 91 days and 35 days offer
attracted 51.49m/- and 101.90m/- respectively.
Yield rates for the 364 and 182 days
offer was 15.86 per cent as in the previous session and 15.49 per cent
compared to 15.68 per cent and of the previous session held two weeks
ago. The 91 days tenure interest rate was 7.50 compared to 7.46 per cent
of the preceding session.
The highest and lowest bid/100 for the
364 and 182 days offers were 87.10/ 83.50 and 93.04/ 15.68 respectively
while for the 91 and 35 days tenor had 98.16 / 93.00. The minimum
successful price/100 for the 364, 182 and 91 days offer were 86.09,
92.70 and 98.16 respectively.
The weighed average price for successful
bid for the 364 tenure was 86.34, the 182 days offer was 92.83 and 91
days offer was 98.16.
Major investors in the one year treasury
bills are commercial banks, pension funds, insurance companies and some
micro-finance institutions.
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