Investors’ appetite for treasury bills has remained strong after attracting bids worth 259.14bn/- supported mainly by sufficient liquidity in the market.
Bank of Tanzania (BoT) auction summary shows that a total of 138.5bn/- was offered for tendering. Yield rates increased slightly in some tenure and in others it registered decline. 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.
The 364 and 182 days offer attracted bids worth 179.42bn/- and 77.10bn/- respectively against 85bn/-and 51bn/- offered to the market for bidding while the 91 days and 35 days offer attracted 2bn/- and 500m/- respectively. Yield rates for the 364 and 182 days’ offer was 15.86 per cent and 14.95 per cent compared to 16.13 per cent and 15.12 per cent of the previous session held two weeks ago.
For the 91 days’ tenure, interest rate was 7.23 per cent compared to 7.50 of the preceding session. The highest and lowest bid/100 for the 364 and 182 days’ offers were 86.80/ 74.00 and 93.17/ 92.61 respectively while for the 91 and 35 days’ tenor had 98.40/ 98.16 and 99.33 / 99.33.
The minimum successful price/100 for the 364, 182 and 91 days’ offer were 86.17, 93.00, 98.22 and 99.33 respectively.
The weighted average price for successful bid for the 364 tenure was 86.34, the 182 days’ offer was 93.06, 91 days’ offer was 98.23 and 99.33. Major investors in the one-year treasury bills are commercial banks, pension funds, insurance companies and some micro-finance institutions