Treasury bill - Twelve months treasury bills maturities recorded an outstanding performance after posting 415.6bn/- despite the falling yield rates.
The Bank of Tanzania (BoT) auction results of the tender conducted last week shows average interest rates dipping to 13.28 per cent compared to 13.59 per cent of the previous session. The situation describes the continued excessive liquidity in the circulation that does not find the matching investment opportunities.
Also the declining annual headline inflation which in the month of February according to the National Bureau of Statistics (NBS) reached 10.9 per cent, is one of the factors behind positive performance of the government securities, in particular the one year treasury bills auction last week.
However, apart from the over subscriptions by more than three times compared to 135bn/- planned to be raised, the government ended up taking only 278.65bn/-.
The tender attracted 321 bids but only 182 emerged successful signifying that some investors tendered below the bidding price. The 364 days tenor saw the total amount tendered jumping to 224.57bn/- compared to only 45bn/- offered in the market for tendering at 13.97 per cent yields down from 14.15 per cent of the previous session.
The government took only 157.94bn/- as successful amount. The total amount tendered for the 182 days rose to 103.13bn/- against the 45bn/- on offer at 13.16 per cent rate of returns down from 13.57 per cent of the preceding market. The successful amount was 75.72bn/- despite the over subscription.
The 91 days offer witnessed the amount tendered increasing to 75.5bn/- against 40bn/- put in the market for tendering at 11.62 per cent down from 11.98 per cent yield rates of the last session. The government took the same amount offered for tendering.
The amount offered for the 35 days jumped to 12.5bn/- against 5bn/- put in the auction, at the returns of 6.45 per cent down from 6.75 of the preceding market, but the government ended up taking the same amount set-forth for bidding.
Tanzania Daily News/05/03/2013