Demand for Treasury Bills in Tanzania has registered impressive over-subscriptions after weeks of poor performance largely resulting from the liquidity squeeze experienced in the circulation.
On Wednesday total bids of 213.07/- were tendered in comparison to 138bn/- offered to the market for bidding.
Yield rates declined across all tenures but did not affect the performance of the short-term government note to attract more bids, a situation implying the easing liquidity squeeze in the market.
The two tenures 364 and 182 days contributed about 99 per cent of the total bids while 91 and 35 shared less than one per cent.
Read:Cash squeeze being experienced expected to continue, BoT
The 364 and 182 days offer attracted bids worth 125.72bn/- and 87.07bn/-respectively against 80bn/-and 50bn/- offered to the market for bidding while the 91 days offer attracted 281.49m/-.
Yield rates for the 364 and 182 days offer were 15.84 per cent and 15.42 per cent compared to 15.86 per cent and 15.68 per cent respectively of the previous session held two weeks ago.
Read: Liquidity Squeeze Affects Investors, Results in Under Subscription Of Treasury Bills
The 91 days tenure interest rate was 7.42 per cent compared to 7.46 per cent of the preceding market. The highest and lowest bid/100 for the 364 and 182 days offers were 88.10/ 83.41and 93.04/92.02 respectively while for the 91 and 35 days tenure had 98.17/ 98.17.
The minimum successful price/100 for the 364, 182 and 91 days offer were 86.05, 92.67 and 98.17. The weighed average price for successful bid for the 364 tenure was 86.36, the 182 days offer was 92.86 and 91 days offer was 98.18. Major investors in the one year treasury bills are commercial banks, pension funds, insurance companies and some microfinance institutions.
Source: Daily news
