19 April 2017

Tanzania: High Investors Demand Greets Five Year Treasury Bonds Auction

Demand for the five-year treasury bonds was high in an auction attracting bids worth 143.58bn/-, which is an oversubscription compared to the preceding session held in February, this year.

The auction results by the Bank of Tanzania (BoT) in a show held last week indicate that a total of 86 out of 119 bids received emerged successful. At the end, the government retained 105bn/- as successful that was sought to be raised in the auction. The weighted average yield to maturity increased to 17.92 per cent from 17.68 per cent of the previous session held in February, this year.

The weighted average coupon yield was 12.77 per cent compared to 12.66 per cent of the auction in February. Weighted average price for successful bids was 71.86 compared to 72.49 of the preceding session. Minimum successful price/100 was 70.67 compared to 71.00 held in the session before.

The highest and lowest bids/100 were 74.26 and 65.56 respectively. Yields may stabilise as more funds are chasing government papers as well as continued decline in inflation.

Treasury bonds are among the instrument used by the government to borrow from the public for various development projects. Some of the key players of long term maturities are commercial banks, with only five per cent as retail investors. Others are pension funds, insurance companies and a few microfinance institutions.


Tanzania Braces for Anti-Government Rallies

Tanzania is trying to avert mass demonstrations planned for Thursday, organized through social media to protest curbs on… Read more »

Copyright © 2017 Tanzania Daily News. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.