19 June 2017

Tanzania: Investors' Appetite for Treasury Bills Hit Record High

Treasury bills auctioned on Wednesday last week attracted over half a billion shillings, sending the short term instrument into almost five times oversubscription.

The outstanding performance of the government securities is an indication of the improved liquidity among the investors' namely commercial banks, pension funds and insurance companies.

According to the Bank of Tanzania (BoT) auction summary, the instrument attracted 536.6bn/- compared to 138.7bn/- offered to the market for tendering. At the end the government retained 142.7bn/- as successful amount.

BoT uses the short-term government note to mop excess liquidity in the circulation. The 364 days tenure dominated the auction after attracting bids worth 306.8bn/- compared to 85.5bn/- offered to the market. At the end 85.5bn/- became successful amount.

The number of successful bids was 12 out of 70 that participated in the 364 days offer. Weighted average yield to maturity was 8.49 per cent compared to 9.90 per cent of the previous session.

The highest bid/100 and lowest bid/100 was 92.61 and 86.65 respectively while minimum successful price/100 was 91.97 and with weighted average price for successful bid was 92.20.

The 182 days tenure attracted bids worth 212.5bn/- compared to 50.5bn/- offered to the market but at the end the amount was retained as successful amount.

The number of successful bids was 23 compared to 88 that applied for the offer. The highest and lowest bids/100 was 96.84 and 94.36 respectively while the minimum successful price/100 was 96.35.

The weighted average price for successful bid was 96.46 while weighted average yield to maturity was 7.36 per cent compared to 8.96 per cent of the preceding session. The 91 days offer attracted bids worth 15.07bn/- compared to 2bn/- offered for bidding and 6bn/- was retained as successful amount.

Three bids out of 12 that applied became successful.

The highest and lowest bids/100 was 98.77 and 98.00 respectively while the minimum successful price/100 was 98.57.

The weighted average price for successful bid was 98.64 while weighted average yield to maturity was 5.53 per cent compared to 6.23 per cent of the preceding session.

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