HIGH LIQUIDITY GREETS TREASURY BILLS AUCTION

HIGH liquidity levels in the market led to outstanding performance of the treasury bills auctioned on Wednesday ending up oversubscribed.

According to the NMB e-markets report, the short-term government instrument was oversubscribed by 213bn/- depicting high liquidity levels in the market with weighted average rate across all tenures falling by few basis points.

For CRDB Bank financial market highlights, liquidity in the interbank money market eased up by 8 basis points by the end of the session with the weighted average rate declining to 7.39 per cent. Bank of Tanzania (BOT) uses the short-term government note to mop excess liquidity in the circulation.

The 364 days tenure dominated the auction after attracting bids worth 233.53bn/- compared to 75.5bn/- offered to the market. At the end 114.74bn/- became successful amount.

The number of successful bids was 33 out of 146 that participated in the 364 days offer. Weighted average yield to maturity was 14.46 per cent compared to 15 per cent of the previous session.

The highest bid/100 and lowest bid/100 was 87.75 and 85.00 respectively while minimum successful price/100 was 87.29 and with weighted average price for successful bid was 87.39. The 182 days tenure attracted bids worth 114.37bn/- compared to 59bn/- offered to the market but at the end the amount was retained as successful amount. The number of successful bids was 14 compared to 44 that applied for the offer.

The highest and lowest bids/100 were 93.87 and 13.45 respectively while the minimum successful price/100 was 93.74. The weighted average price for successful bid was 93.79 while weighted average yield to maturity was 13.28 per cent compared to 13.61 per cent of the preceding session.

The 91 days offer attracted bids worth 4.08bn/- compared to 4bn/- offered for bidding and was retained as successful amount. Two bids out of three who applied became successful.

The highest and lowest bids/100 were 98.28 and 98.28 respectively while the minimum successful price/100 was 98.28.

The weighted average price for successful bid was 98.28 while weighted average yield to maturity was 7.00 per cent. Key players in the short-term government instrument are commercial banks, pension funds, insurance companies and some microfinance institutions.