{"id":45715,"date":"2022-01-21T14:50:49","date_gmt":"2022-01-21T14:50:49","guid":{"rendered":"https:\/\/www.africa-press.net\/tanzania\/?p=45715"},"modified":"2022-01-21T13:38:59","modified_gmt":"2022-01-21T13:38:59","slug":"25-year-bond-breaks-new-price-oversubscription-records","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/tanzania\/all-news\/25-year-bond-breaks-new-price-oversubscription-records","title":{"rendered":"25-year bond breaks new price, oversubscription records"},"content":{"rendered":"

Africa-Press – Tanzania. <\/strong><\/span>THE 25 years Treasury bond has been heavily oversubscribed by five times at the expense of the yields while pushing up prices at new high to reflect analysts\u2019 predictions.<\/p>\n

The central bank reopened the government paper Wednesday, which was auctioned first time last April, figuring to raise 133bn\/- at 15.95 per cent yields.<\/p>\n

Zan Securities Chief Executive Officer, Raphael Masumbuko said yesterday that the oversubscription pushed up cut off price to 117\/31\u2014a new high to suppress down average yield to 13.8179 per cent\u2014a new low.<\/p>\n

\u201cThe auction [results] seem to have caught a lot (of investors) by surprise\u2026<\/p>\n

\u201cWe see this having a knock on effect for the respective paper in the secondary market,\u201d Mr Masumbuko said through a statement.<\/p>\n

The central bank accepted only 54 bids out of 1136 received, equivalent to a 4.75 per cent success rate.<\/p>\n

The bond was oversubscribed by 393 per cent to 656.04bn\/- and at the end of the auction the Bank of Tanzania (BoT) accepted 133bn\/-.<\/p>\n

\u201cWe are going to see more downward pressure on yields on forthcoming auctions,\u201d the Zan CEO said.<\/p>\n

The auction was the 5th reopening of the T-bond since the central bank began to reissue last November and seems to pay off in cutting yield rates.<\/p>\n

\u201cThere has been downward pressure on yields, much to the credit of accommodative monetary policy by the BoT to re-allocate the excess liquidity back to the economy to foster economic growth,\u201d Mr Masumbuko said.<\/p>\n

According to BoT Monthly Economic Review, loan to the private sector grew by 7.8 per cent last November compared to 5.6 per cent of October last year.<\/p>\n

On Tuesday, debt analysts had projected that the yields for the 25-year T-bond were bound to go up, warranting the market to experience humped curve trend.<\/p>\n

Debt Market Analyst, Imani Muhingo said the market expects a significant oversubscription similar 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 long tenure bond issued in April 2021,\u201d Mr Muhingo said.<\/p>\n

Vertex Securities said in its weekly market review 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 reopened price for the 25-year T-bond sold on Wednesday comprised 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

The humped curve may form as a 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 Tuesday.<\/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 25 years Treasury bond has been heavily oversubscribed by five times at the expense of the yields while pushing up prices at new high to reflect analysts\u2019 predictions. The central bank reopened the government paper Wednesday, which was auctioned first time last April, figuring to raise 133bn\/- at 15.95 per cent […]<\/p>\n","protected":false},"author":84,"featured_media":45714,"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-45715","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":"\n25-year bond breaks new price, oversubscription records - Tanzania<\/title>\n<meta name=\"description\" content=\"THE 25 years Treasury bond has been heavily oversubscribed by five times at the expense of the yields while pushing up p ...\" \/>\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\/25-year-bond-breaks-new-price-oversubscription-records\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"25-year bond breaks new price, oversubscription records\" \/>\n<meta property=\"og:description\" content=\"THE 25 years Treasury bond has been heavily oversubscribed by five times at the expense of the yields while pushing up p ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/tanzania\/all-news\/25-year-bond-breaks-new-price-oversubscription-records\" \/>\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=\"2022-01-21T14:50:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/tanzania\/sites\/17\/2022\/01\/img-61eab75b50369.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=\"3 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\/25-year-bond-breaks-new-price-oversubscription-records#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/25-year-bond-breaks-new-price-oversubscription-records\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"25-year bond breaks new price, oversubscription records\",\"datePublished\":\"2022-01-21T14:50:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/25-year-bond-breaks-new-price-oversubscription-records\"},\"wordCount\":514,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/25-year-bond-breaks-new-price-oversubscription-records#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/tanzania\/sites\/17\/2022\/01\/img-61eab75b50369.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\/25-year-bond-breaks-new-price-oversubscription-records#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/25-year-bond-breaks-new-price-oversubscription-records\",\"url\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/25-year-bond-breaks-new-price-oversubscription-records\",\"name\":\"25-year bond breaks new price, oversubscription records - 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