{"id":45518,"date":"2022-01-19T15:13:38","date_gmt":"2022-01-19T15:13:38","guid":{"rendered":"https:\/\/www.africa-press.net\/tanzania\/?p=45518"},"modified":"2022-01-19T14:40:48","modified_gmt":"2022-01-19T14:40:48","slug":"humped-curve-looms-as-yields-on-25-year-bond-forecast-to-fall","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/tanzania\/all-news\/humped-curve-looms-as-yields-on-25-year-bond-forecast-to-fall","title":{"rendered":"Humped curve looms as yields on 25-year bond forecast to fall"},"content":{"rendered":"

Africa-Press – Tanzania. <\/strong><\/span>The yields for the 25-year Treasury bond that goes under the hammer today are projected to fall as the humped curve trend looms loudly.<\/p>\n

The central bank wants to raise 133bn\/- paid in the next 25 years at 15.95 per cent, however, the bond is subjected to clean and dirt prices since it was launched in April last year.<\/p>\n

The clean price is the price of a coupon bond not including any accrued interest while dirty price is when a bond price includes interest that has accrued since the latest coupon payment.<\/p>\n

Debt Market Analyst Imani Muhingo said the market expects a significant oversubscription similar to previous long-term auctions.<\/p>\n

\u201cThe appetite for these papers is still high, as the yields are still higher compared to other East African markets.<\/p>\n

\u201cThe prices are also expected to skyrocket, considering it goes by a dirty price since it\u2019s a reopening of a 25years bond issued in April 2021,\u201d Mr Muhingo said.<\/p>\n

Vertex Securities said in its weekly market review yesterday that the bond yields are expected to go down amid high oversubscription.<\/p>\n

\u201cWe expect yields to decrease in the [today\u2019s] auction for a 25\u2013year bond with subscriptions reaching high levels,\u201d Vertex said.<\/p>\n

The bond price, BoT said, will include the accrued interest of 3\/9766 per 100\/-, meaning that based on the yield to maturity of 16.3381 per cent, the clean price is 97\/6771 while the dirty price is 101\/6537.<\/p>\n

Zan Securities projected in their weekly market wrap-ups further decline in yields for the long end of the curve as investors continue to prefer high coupons being offered by long-dated papers.<\/p>\n

\u201cAs yields on the long end of the yield curve continue to fall, we are likely going to see a humped yield curve, which is uncommon\u2026,\u201d Zan said.<\/p>\n

The humped curve may form as the result of a negative butterfly, or a non-parallel shift in the yield curve where long and short-term yields fall more than an intermediate one.<\/p>\n

\u201cWe have already seen a sharp fall in a 20-year paper yields currently trading at 13.8per cent, just 30 basis points above the 15-year Treasury bond coupon,\u201d Zan said in the report yesterday.<\/p>\n

The stock brokerage firm further said activities in the secondary market were vibrant last week as market activities continue to resume off the holiday season.<\/p>\n

The value of bonds traded increased by 240 per cent to 62.66bn\/- from 18.41bn\/- recorded last week.<\/p>\n

\u201cThe increase in trading mirrored our projection last week as we anticipated trading activities to slightly increase mid-way through January,\u201d Zan report said:<\/p>\n

\u201cWe expect activities in the secondary bond market to cool off owing to primary bond issuance as the central bank sets to auction a 25-year Treasury bond [today]\u201d<\/p>\n

For More News And Analysis About Tanzania<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Tanzania. The yields for the 25-year Treasury bond that goes under the hammer today are projected to fall as the humped curve trend looms loudly. The central bank wants to raise 133bn\/- paid in the next 25 years at 15.95 per cent, however, the bond is subjected to clean and dirt prices since […]<\/p>\n","protected":false},"author":84,"featured_media":45517,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8,16],"tags":[6990,6991,711],"class_list":["post-45518","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","category-twitter","tag-africa-press-2","tag-africa-press-tanzania","tag-tanzania"],"yoast_head":"\nHumped curve looms as yields on 25-year bond forecast to fall - Tanzania<\/title>\n<meta name=\"description\" content=\"The yields for the 25-year Treasury bond that goes under the hammer today are projected to fall as the humped curve tren ...\" \/>\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\/all-news\/humped-curve-looms-as-yields-on-25-year-bond-forecast-to-fall\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Humped curve looms as yields on 25-year bond forecast to fall\" \/>\n<meta property=\"og:description\" content=\"The yields for the 25-year Treasury bond that goes under the hammer today are projected to fall as the humped curve tren ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/tanzania\/all-news\/humped-curve-looms-as-yields-on-25-year-bond-forecast-to-fall\" \/>\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=\"2022-01-19T15:13:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/tanzania\/sites\/17\/2022\/01\/img-61e822d5096ea.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\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\/all-news\/humped-curve-looms-as-yields-on-25-year-bond-forecast-to-fall#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/humped-curve-looms-as-yields-on-25-year-bond-forecast-to-fall\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Humped curve looms as yields on 25-year bond forecast to fall\",\"datePublished\":\"2022-01-19T15:13:38+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/humped-curve-looms-as-yields-on-25-year-bond-forecast-to-fall\"},\"wordCount\":471,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/humped-curve-looms-as-yields-on-25-year-bond-forecast-to-fall#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/tanzania\/sites\/17\/2022\/01\/img-61e822d5096ea.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Tanzania\",\"tanzania\"],\"articleSection\":[\"all news\",\"Economy\",\"homepage-english\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/tanzania\/all-news\/humped-curve-looms-as-yields-on-25-year-bond-forecast-to-fall#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/humped-curve-looms-as-yields-on-25-year-bond-forecast-to-fall\",\"url\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/humped-curve-looms-as-yields-on-25-year-bond-forecast-to-fall\",\"name\":\"Humped curve looms as yields on 25-year bond forecast to fall - 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