Friday, December 29, 2017

T-bills end the year outstandingly

DAILY NEWS Reporter
STRONG demand greeted the last treasury bills auction to be traded this year after attracting bids worth 264.2bn/-.
However, apart from oversubscriptions, the government retained 105.5bn/- as successful amount which is below 169bn/- which was offered to the market for bidding. The Bank of Tanzania (BoT) uses the short-term government note to mop excess liquidity in the circulation.
Investors in the government securities particularly commercial banks have continued to dominate the treasury bills auction, the situation that may have reduced the share of the credit extended to the private sector. Other players in the treasury bills auction are pension funds and microfinance institutions.
Interest rates on the 364 tenure declined to 8.43 per cent from 8.98 per cent of the previous sessions. Yield rate on 182 days tenure declined to 5.35 per cent from 6.39 per cent of the preceding session held two weeks ago.
Weighted average price for successful bid increased to 8.27 per cent from 8.11 per cent of the last session. The 364 days tenure attracted bids worth 117.5bn/- compared to 100bn/- offered to the market and at the end it was retained as successful amount.
The 182 days offer attracted bids worth 146.6bn/- compared to 65bn/- offered to the market for bidding and 55bn/- was kept as successful amount. The two tenures, 364 and 182 days offer commanded 99 per cent to the total bid tendered to the market in the Wednesday auction.
The number of successful bids was 90 out of 181 that participated in the one year treasury bills auction. The highest bid/100 and lowest bid/100 was 93.05 and 90.93 respectively while minimum successful price/100 was 91.82 and the weighted average price for successful bid was 92.24.

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