Demand for the treasury bills has continued to be impressive after papers were oversubscribed by 87.78bn/- with yields across all tenures taking a downward trend. The Bank of Tanzania (BoT), summary for the one year treasury bills auctioned on Wednesday shows that it attracted bids worth 220.78bn/- against 133bn/- offered to the market for bidding. Comparatively, the total amount tendered declined to 220.78bn/- compared to 386.21bn/- of the previous session and at the end the government retained 126bn/- as successful amount.
Some of the investors in the one year treasury bills are commercial banks, pension funds, insurance companies and some microfinance institutions. The two tenures, 364 and 182 days have continued to be the most attractive after contributing about 99 per cent of the total bids while 91 and 35 shared less than one per cent.
The 364 and 182 days offer attracted bids worth 108.58bn/- and 111.09bn/- respectively against 75bn/- and 50bn/- offered to the market for bidding while the 91 days offer attracted 1.09m/- Yield rates for the 364 and 182 days offer were 16.63 per cent and 15.97 per cent respectively compared to 17.32 per cent and 16.76 per cent of the previous session held two weeks ago.
The 91 days tenure interest rate was 8.29 per cent compared to 8.24 per cent. The highest and lowest bid/100 for the 364 and 182 days offers were 86.49/ 83.37 and 92.94/ 91.76 respectively while for the 91 and 35 days tenor had 98.00/ 97.81.
The minimum successful price/100 for the 364, 182 and 91 days offer were 85.40, 92.40 and 97.95 respectively. The weighted average price for successful bid for the 364 tenure was 85.77, the 182 days offer was 92.62 and 91 days offer was 97.98