In Summary
  • Analysts observed that the reason the bids were unsuccessful was low prices that investors offered against the prices that the Bank of Tanzania had set.

Dar es Salaam. The Bank of Tanzania (BoT) rejected 25 bids worth Sh34 billion during the treasury bills auction held on Wednesday.

The auction report shows that a total of 90 bids worth Sh131.5 billion tendered against Sh141 billion offered, which is undersubscription by Sh9.47 billion.

However, at the end of auction, the central bank accepted only 65 bids valued Sh97.9 billion, which indicated that Sh34 billion were refunded to investors.

Analysts say the bids were rejected due to low prices, as the bank accepted a minimum successful price ranged between 92.50/100 and 99.74/100 depending on the maturity.

The auction results show that some of the rejected bids were on six months and one year maturities, as the lowest bid for 182-days maturity was at 97.30/100 against successful price of 97.56/100.

For one year maturity, the lowest bid was at 92.18/100 against successful price of 92.50/100.

According to the auction results, many bids were received on six months and one year maturities, whereby six months maturity oversubscribed by Sh30 billion through Sh63.1 billion worth bids against Sh33 billion offered.

All bids for 35-days and 91-days maturities were successful, as Sh1 billion were tendered against similar amount offered for 35-days, and one bid worth Sh3 billion tendered against Sh3 billion offered.

The overall weighted average yields for all maturities went down to 6.75 per cent during the Wednesday’s float from 7.23 per cent auctioned on August 19th this year.