IMPROVED liquidity in the market has resulted into investors’ active participation in the five years treasury bonds auction held by the Bank of Tanzania (BoT) Wednesday.
The auction results show that BoT managed to collect bids worth 113.87bn/-, higher than 105bn/- offered for tendering.
Key participants on the five-year
treasury bonds are pension funds, commercial banks, insurance firms and
some microfinance institutions. Despite high investors’ appetite on the
five-year treasury bonds, the government retained 60.32bn/- as
successful amount.
The National Microfinance Bank (NMB)
says in its e-market report that liquidity has improved in the market,
with overnight weighted average rate at 12.04 per cent. Investors active
participation in the long term debt securities is an indication that
liquidity situation in the market has picked after months of tight
liquidity stance.
Funds raised through sale of treasury
bonds are spent in the infrastructure development and other social
services. Weighted average yield to maturity was 17.96 per cent higher
than 17.87 per cent offered in the previous five years treasury bonds
held in September, this year.
Similarly, weighted average coupon yield
was 12.78 per cent slightly above the 12.74 per cent of the preceding
session. The minimum successful price/100 was 71.00 while the weighted
average price for successful bids 71.79.
The Highest Bid /100 was 75.00 and the
minimum bid/100 was 65.59. The five years treasury bonds attracted a
total number of bids of 140 and successful bids 99.
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