TREASURY bills auctioned by the Bank of Tanzania (BoT) on Wednesday ended the trading session oversubscribed after fetching 146.18bn/- compared to 107.2bn/- planned to be raised.
According to the (BoT) auction summary, the government retained 82.78bn/- as successful amount despite ending the trading session oversubscribed.
High investors’ appetite greeted the 364 days offer that attracted over 99 per cent of the amount tendered to 145.11bn/- out of 146.18bn/- total amount tendered. The 182 days attracted bids worth 300m/-, 30.26m/- for the 91 days and 750m/- for 35 days offer.
The 364 and 182 instrument are used by the government to raise funds for financing budget while the 91 and 35 days offers are used to mop up excessive liquidity in the circulation.
Yield rates for the 364 days offer declined to 5.84 per cent compared to 5.91 per cent of the session held two weeks ago. The yield for the 182 days was 0.00 per cent compared to 4.22 per cent of the previous trading session.
The yield rates for the 91 and 35 days offer were 3.50 per cent and 2.80 per cent, respectively compared 3.50 per cent and 3.00 per cent of the session held some two weeks.
Commercial banks are key players taking over 60 per cent of the market share in the investment on the treasury bills. Other key investors are pension funds, insurance companies, some microfinance institutions and retail investors.
