Tuesday, December 6, 2016

Demand for T-bills impressive

DAILY NEWS Reporter
STRONG demand for treasury bills continued to characterise the market after attracting bids worth 196.98bn/- compared to 138.5bn/-offered for tendering, supported mainly by sufficient liquidity in the circulation.
According to the Bank of Tanzania (BoT) auction summary the amount tendered was slightly down to 196.98bn/- compared to 259.14bn/-of the preceding short term maturities. Yield rates declined across all tenures but did not discourage or reduce the amount tendered.
The two tenures 364 and 182 days contributed about 98 per cent of the total bids while 91 and 35 shared the remaining. The 364 and 182 days offer attracted bids worth 128.73bn/- and 65.65bn/-respectively against 85bn/- and 51bn/- offered to the market for bidding while the 91 days and 35 days offer attracted 2.1bn/-and 500m/-respectively against 2bn/-and 500m/- offered to the market.
Yield rates for the 364 and 182 days offer were 15.82 per cent and 14.67 per cent compared to 15.86 per cent and 14.95 per cent of the previous session held two weeks ago. For the 91 days tenure, interest rate was 7.10 per cent and 6.80 per cent compared to 7.23 per cent 7.50 per cent of the preceding session.
The highest and lowest bid/100 for the 364 and 182 days offers were 86.69/ 84.20 and 93.32/ 92.61 respectively while for the 91 and 35 days tenor had 98.26/ 98.25 and 99.35/ 99.35. The minimum successful price/100 for the 364, 182 and 91 days offer were 85.95, 93.08, 98.26 and 99.35 respectively.
The weighed average price for successful bid for the 364 tenure was 86.34, the 182 days offer was 86.37, 91 days offer was 93.19 and 98.26.
Major investors in the one-year treasury bills are commercial banks, pension funds, insurance companies and some micro-finance institutions.

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