THE 15-year Treasury bond yield to maturity rate gained 11 pips thanks to decrease appetite that pushed the instrument, auctioned last week, to under subscription.
The yield to maturity for the bond realized was 14.30 percent compared to 14.19 per cent from the previous auction.
The yield increase echoing Zan Securities sentiment late last month that the rate will go up after analysing the 20 years bond.
Zan Chief Executive Officer (CEO), Raphael Masumbuko said they expected the 15 years bond rate will slight increase based on the 10 years trend.
“We expect a slight increase in yield in the next week auction for 15–year bond due to what happened in the auction for the 20–year bond,” Mr Masumbuko said.
The central bank saw the auction held last Wednesday undersubscribed by 7.75 per cent.
The Bank of Tanzania (BoT), wanted to raise 109bn/-but instead realize 100.55bn/-. Orbit Securities said yesterday through its Weekly Market Synopsis that despite the Bank of Tanzania retaining less than the tender size, the weighted average yield to maturity (WAYTM) of the 15 years bond gained compared to the previous similar auction.
“The amount finally raised by the BoT was 14.5percent lower than the tender size as the Bank recouped a total of 85.96bn/-,” Orbit said in its market report.
Tanzania Securities said in its weekly market blast that the minimum successful price was 92.80 with the weighted average price for successfully bids being 95.06 from 95.99 in the previous auction.
On the secondary market, the government bond segment transacted 41.73bn/-with the face value of 40.94bn/-from previous week's transaction value and the face value of 43.94bn/- and 43.52bn/- respectively.
Tanzania Securities also said the corporate bond segment transacted 8.2m/-with the face value of 88.00m/-.