According to the auction results, the total amount tendered jumped to 145,42bn/- against 110bn/- planned to be raised by the central bank at an average interest rate of 13.14 per cent.
“More volumes were expected in the auction to settle T-bills. The yield curve has shifted upwards as expected with the largest move in the one year bucket,” stated Standard Chartered Bank Daily Market Commentary.
The bank report states further that there was a higher appetite for 91days and one year offers buckets but no appetite for 35 day yet again. The auction shows market appetite for Treasury Bills has improved due to the 35bn/- oversubscription but yields ended up higher across board due to negative market sentiment. “Interest rates increased marginally across all tenors with the exception of 35 days which had no takers.
The auction was over subscribed by 35.435bn/- with 105 bn/- accepted by the Central Bank,” Barclays Bank market report shows. The total amount tendered for the 364 days offer was 45.76bn/- compared to 40bn/- initially drafted to be mobilized at interest rates of 13.76 per cent.
The 182 days offer was oversubscribed to 48.64bn/- compared to 35bn/- offered for tendering at a rate of return of 13.01 per cent. Likewise, total amount tendered for the 91 days offer was 51.01bn/- against 30bn/- placed for tendering at 12.45 per cent rate of return.
There was no appetite for the 35 days offer. The Tanzania Securities Limited (TSL) Chief Executive Officer Mr Moremi Marwa said the oversubscription indicates that the liquidity level in the market was still good although most players were about to address the end of month obligations. “The increased yields in 364, 182 and 91 days tenors might have been one of the reasons which attracted massive investments in the twelve month Treasury Bills,” he said.