Africa-Press – Tanzania. THE increased appetite for Treasury bills have pushed down yields rates, but debt analysts think would not affect government bonds.
Some debt analysts said the change in bills rates would not bring significant change to the coming 15-year Treasury bond which goes under the hammer tomorrow.
Vertex International Securities, Manager of Advisory and Capital Market, Ahmed Nganya said the demand decelerates yields raise due to the bill oversubscription.
“Does this signify a change in yield trend? We think it’s too early to call,” Mr Nganya said over the weekend through the firm’s weekly market review.
However, the debt analyst said they expect the bills’ yield rate to have no contagion effect to bonds rates. “We expect an increase in yield in [this] week’s auction for 15-year government bond,” Mr Nganya said.
The yields for the 182 days and 364 days bills both went down by 38 basis points (bps) and 9bps to 3.53 per cent and 5.91 per cent respectively.
Zan Securities Chief Executive Officer Raphael Masumbuko said that investors’ appetite appears to be for the longer-term securities, which offer a higher return.
“…We anticipate this notion to be reflected on this week’s 15-Year Treasury bond auction,” Mr Masumbuko said in the firm’s Weekly Market Wrap-ups.
The last week auction of the Treasury bills, however, saw the 35 days and 91 days tenors receiving zero bids while the 364 days tenor was oversubscribed by 234.8 per cent.
Orbit Securities said in its Weekly Market Synopsis that the total offer size from the Bank of Tanzania (BoT) amounted to the usual 76.7bn/- while the total tender size amounted to 240.72bn/- from 93 bids.
“The Central bank accepted 39 bids worth 58.7bn/- , way lower than the tender size, resulting in lower yields,” Orbit said.
The 182 days tenor was fully subscribed and the BoT took the whole tender size, while leaving 182.02bn/- on the table from bids of the 364 days tenor.
Meanwhile, the Dar es Salaam Stock Exchange (DSE) recorded yet another bullish week as domestic as well as cross-listed equities maintained a week-on-week rally.
Three domestic counters rallied last week, led by CRDB which went up 5.56per cent, taking an about turn at the end of the week after a slight 1.85per cent decline last Thursday.
CRDB closed last week at a price of 285/- per share from 270/- during the previous week as the bank approaches the ex-dividend dates at the end of the following week.
