The Treasury Bills auction in Tanzania fell short of its targeted goal of raising 133 billion after attracting few bids. This fell below expectations making the session end in under-subscribed. This is the first since the beginning of this year to under perform due to liquidity squeeze in the circulation that adversely affected investors’ participation in the business.
The Bank of Tanzania (BoT) stated that the auction summary of the treasury bills auctioned on Wednesday, a total of 116.06bn/- bids were tendered and at the end the government retained 114.86bn/- as the successful amount. Yield rates posted across all tenures registered a downward trend in comparison to the previous treasury bills auction held two weeks ago.
For the 364 days offer, the interest rates slowed to 16.62 per cent compared to 16.63 per cent of the previous session. The yield rates for the 182 days declined to 15.60 per cent compared to 15.67 per cent recorded in the other session.