THE investor appetite for Treasury Bills has gone down a great deal closing the trading session undersubscribed.
The auction, according to Bank of Tanzania (BoT), saw 35 days tenor undersubscribed by 50 per cent while 91 and 182 days received no bids.
Orbit Securities said only the 364-day tenor was oversubscribed by 4.58 per cent.
“Investors’ appetite on Treasury bills went down during an auction…after the 35 days tenor was undersubscribed by 50 per cent in one bid while the 91 days and 182 days tenors received no bids”.
Orbit, said in its weekly market synopsis that “as usual, the 364 days tenor received the most attention”, receiving 80 bids out of a total of 81 bids for the whole auction.
The total offer size from the BoT was the usual 107.2bn/- while the public tendered 0.5 per cent less from the offer. BoT accepted 65 bids worth 98.3bn/-.
“The successful amount was 7.83 per cent lower than the tender size, deliberately to limit the cost of capital to the government,” Orbit said.
In that sense, the total weighted average yield to maturity (WAYTM) lowered by 16basis points (bps) to 5.47 per cent while maintaining the deceleration for a third week in a row.
On the secondary market, Tanzania Securities said in its Weekly Market Blast the government transacted 29.16bn/- with face value of 29.56bn/-from last week’s transaction value and face value of 15.43bn/-and 16.08bn/-respectively.
The corporate bond segment remained dry as the previous week.
