BIDS worth 407.35bn/- were collected through Treasury bills auction held at the Bank of Tanzania (BoT) yesterday, indicating high market liquidity.
However, apart from oversubscriptions, the government retained 168.03bn/- as successful amount which is slightly below 169bn/-, the amount offered to the market. Central Bank uses the short-term government note to mop excess liquidity in the circulation.
Investors in the government securities are mainly commercial banks, pension funds and some microfinance institutions. Interest rates on the 364 tenure declined to 10.76 per cent from 11.21 per cent and 11.62 per cent the two previous sessions.
Yield rate on 182 days tenure declined to 7.68 per cent from 8.66 per cent and 9.16 per cent of the preceding sessions. Weighted average price for successful bid decreased to 9.45 per cent from 10.30 per cent and 10.86 per cent of the last sessions.
The 364 days tenure attracted bids worth 219.02bn/- compared to 100bn/- offered to the market and at the end 99.9bn/- was retained as successful amount.
The 182 days offer attracted bids worth 185.08bn/- compared to 65bn/- offered to the market for bidding and 65bn/- was kept as successful amount.
The two tenures, 364 and 182 days offer commanded 99 per cent to the total bid tendered to the market in the Wednesday auction. The number of successful bids was 82 out of 266 that participated in the one year treasury bills auction.
The highest bid/100 and lowest bid/100 was 94.77 and 86.95 respectively while minimum successful price/100 was 90.11 and with weighted average price for successful bid was 90.31.