In Summary
  • The auction results published on the BoT website shows that a total of 221 bids valued Sh317.2 billion were received but only 66 valued Sh84 billion were successful.

Dar es Salaam. The lowered yields two years Treasury bond floated on Wednesday, February 14, by the Bank of Tanzania (BoT) ended up being oversubscribed, a clear sign of high appetite among investors for government debt instruments.

The auction results published on the BoT website shows that a total of 221 bids valued Sh317.2 billion were received but only 66 valued Sh84 billion were successful.

This indicated that a total of Sh233 billion have to be refunded to investors as the central bank accepted bids worth of the offered amount.

The weighted average yields to maturity was lowered to 9.21 per cent for the float, lower than 11.09 per cent recorded during the previous similar bond floated on December 7, last year. The rate for coupon yield also lowered to 8 per cent from 8.29 per cent during the previous 2-year bond auction.

The summary shows that the highest bid were 98.7731/100 while lowest were 85.2713/100 but minimum successful price was 96.8817/100. However, the weighted average price for successful bids were97.5118/100.