TREASURY bills auctioned by the Bank of Tanzania (BoT) last week ended the trading session oversubscribed after fetching 168.48bn/- compared to 107bn/- planned to be raised.
According to the auction summary, the government retained 90.50bn/- as successful amount despite ending the trading session oversubscribed. High investors’ appetite greeted the 364 days offer that attracted over 90 per cent of the amount tendered to 153.46bn/- out of 168.48bn/- total amount tendered.
The 182 days attracted bids worth 15.02bn/- whereas investors shunned to bid the remaining tenures namely 91 and 35 days. The 364 and 182 instrument are used by the government to raise funds for financing budget while the 91 and 35 days offers are used to mop up excessive liquidity in the circulation. Yield rates for the 364 days offer declined to 5.87 per cent compared to 6.13 per cent of the session held two weeks ago.
The yield for the 182 days was 4.55 per cent compared to zero rates of the previous session. The yield rates for the 91 and 35 days offer were zero for the auction held last week as well as that of the previous trading session.
Commercial banks are key players taking over 60 per cent of the market share in the investment on the treasury bills. Other key investors are pension funds, insurance companies, some microfinance institutions and retail investors.