TREASURY BILLS OVERSUBSCRIBED BY SH176BN

In Summary

The Treasury bill auction summary published by BoT has shown that a total of Sh345.9 billion was tendered on a Sh169 billion offered amount.

Dar es Salaam. Investors’ appetites on government securities are continuing to remain high after Treasury bills floated today by the Bank of Tanzania (BoT) ended up being oversubscribed by more than 100 per cent.

The Treasury bill auction summary published by BoT has shown that a total of Sh345.9 billion was tendered on a Sh169 billion offered amount.

Analysts say investors’ appetite for government debt instruments is due to the fact that it is the only investment portfolio where they get fixed incomes with zero risks.

However, the summary shows that there has been a slight drop of yields as today float fetched 8.11 per cent from 8.34 per cent for the previous T-bills floated on November 29, this year.

There were no yields for T-bills with 35-days and 91-days maturities.

According to the summary a total of 184 bids were recorded during the float, but only 91 were successful.

The 182-days and 364-days maturity floats received many bids with oversubscription trend while the short term- 35-days and 91-days maturity were undersubscribed.

At the end of the auction, all bids for 35-days and 91-days maturities were unsuccessful as the government opted to take bids for six months and one year maturities.

The Citizen