{"id":14858,"date":"2020-09-07T18:10:59","date_gmt":"2020-09-07T18:10:59","guid":{"rendered":"https:\/\/www.africa-press.com\/tanzania\/?p=14858"},"modified":"2020-09-07T18:10:59","modified_gmt":"2020-09-07T18:10:59","slug":"t-bill-yields-drops-below-deposit-rates","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/tanzania\/economy\/t-bill-yields-drops-below-deposit-rates","title":{"rendered":"T-BILL YIELDS DROPS BELOW DEPOSIT RATES"},"content":{"rendered":"

Author: ABDUEL ELINAZA<\/strong>
\nAfricaPress-Tanzania:<\/strong> TREASURY bill yields rates have dropped to drastically low level in history, forcing investors to look at other options for liquidity management.<\/p>\n

The last Wednesday auction results painted to a rather new picture as rates plummeted to less than deposit rates and fixed deposit receipts (FDRs) from commercial banks.<\/p>\n

The mid-last week bill auction results showed that weighted average yields stood at 3.97 per cent and only 365 days were sold, but under subscribed by 23.7 per cent.<\/p>\n

The low yields rates, according to some debt analysts, showing the central bank want investors to channel their funds to other investment areas since a need to mop out liquid in the market is not there due to low inflation rate.<\/p>\n

Orbit Securities Head of Research and Analytics Imani Muhingo told the ‘Daily News’ that it seemed investors were rather pushing back on lower yields.<\/p>\n

“The majority of investors in Treasury bills comprise financial institutions, worrying about liquidity management,” Mr Muhingo said at the weekend adding:<\/p>\n

“Now yields are way less than FDRs and deposit rates from commercial banks.\u201d<\/p>\n

According to the Bank of Tanzania (BoT), a one-year overall deposit rate stood at 7.54 per cent for the year ending June.<\/p>\n

During the auction, three tenors received zero bids while the only active tenor, the 364days were undersubscribed by 23.7 per cent.<\/p>\n

The central bank wanted to raise 84.53bn\/-, but the market instead offered 64.47bn\/-. Successful bids were merely 18.97bn\/-.<\/p>\n

“Investors are looking at other options for liquidity management rather than T-bills,” the head of analytics said.<\/p>\n

Tanzania Securities projected that the bill to be oversubscribed based on higher craving of government securities; the auction behaved the other way.<\/p>\n

“We may see oversubscription of treasury bills due to the higher craving for government securities,” Tanzania Securities said in its Weekly Market Blass last week.<\/p>\n

However, they predicted right that the market might witness a decline in yields for medium-term securities, the same would be applied to short-term instruments.<\/p>\n

Furthermore, Tanzania Securities said, \u201cthe government securities yield curve will continue remaining normal, with downward movements in the weighted average yields.”<\/p>\n","protected":false},"excerpt":{"rendered":"

Author: ABDUEL ELINAZA AfricaPress-Tanzania: TREASURY bill yields rates have dropped to drastically low level in history, forcing investors to look at other options for liquidity management. The last Wednesday auction results painted to a rather new picture as rates plummeted to less than deposit rates and fixed deposit receipts (FDRs) from commercial banks. The mid-last […]<\/p>\n","protected":false},"author":84,"featured_media":14853,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[274,5688,1864],"class_list":["post-14858","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-bot","tag-fdrs","tag-treasury-bills"],"yoast_head":"\nT-BILL YIELDS DROPS BELOW DEPOSIT RATES - Tanzania<\/title>\n<meta name=\"description\" content=\"TREASURY bill yields rates have dropped to drastically low level in history, forcing investors to look at other options for liquidity\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/tanzania\/economy\/t-bill-yields-drops-below-deposit-rates\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"T-BILL YIELDS DROPS BELOW DEPOSIT RATES\" \/>\n<meta property=\"og:description\" content=\"TREASURY bill yields rates have dropped to drastically low level in history, forcing investors to look at other options for liquidity\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/tanzania\/economy\/t-bill-yields-drops-below-deposit-rates\" \/>\n<meta property=\"og:site_name\" content=\"Tanzania\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2020-09-07T18:10:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/tanzania\/sites\/17\/2020\/09\/e4c5b6b0f74ecc9b7a5b79af32b395bd.png\" \/>\n\t<meta property=\"og:image:width\" content=\"768\" \/>\n\t<meta property=\"og:image:height\" content=\"496\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/economy\/t-bill-yields-drops-below-deposit-rates#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/economy\/t-bill-yields-drops-below-deposit-rates\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"T-BILL YIELDS DROPS BELOW DEPOSIT RATES\",\"datePublished\":\"2020-09-07T18:10:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/economy\/t-bill-yields-drops-below-deposit-rates\"},\"wordCount\":355,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/economy\/t-bill-yields-drops-below-deposit-rates#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/tanzania\/sites\/17\/2020\/09\/e4c5b6b0f74ecc9b7a5b79af32b395bd.png\",\"keywords\":[\"BoT\",\"FDRs\",\"TREASURY bills\"],\"articleSection\":[\"all news\",\"Economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/tanzania\/economy\/t-bill-yields-drops-below-deposit-rates#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/economy\/t-bill-yields-drops-below-deposit-rates\",\"url\":\"https:\/\/www.africa-press.net\/tanzania\/economy\/t-bill-yields-drops-below-deposit-rates\",\"name\":\"T-BILL YIELDS DROPS BELOW DEPOSIT RATES - 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