Tanzania: One-Year Bill Yield Increases As Prices Fall


THE first auction of two Treasury bills this year has been substantially oversubscribed, but prices and yields painted a mixed trend.

The two bills, 182 and 364 days, both were oversubscribed while the 35 and 91 days were cancelled for lack of bidders at the auction held on Tuesday. The 364-day bill was oversubscribed by almost 60 per cent to 115.3bn/- against the Bank of Tanzania (BoT) offer at the table of 72.7bn/-.

The oversubscription in per cent was equal to 42.6bn/-. Vertex International Securities’ projection in its Weekly Market Review went right as the bill yields continue raising.

“We expect yields to increase in this week Treasury bills auction,” Vertex said prior to the auction over the weekend.

The yields of 364-day bill walked down in comparison with the previous one after declining to 95/16 from 95/26 of last month. The prices declined pushed up yields by almost 1.0 per cent to 5.10 per cent from previous 4.99 per cent recorded in the last auction in 2021.

However, on the other side, the 182 days bill was oversubscribed by slightly over double, to 6.5bn/- against 3.0bn/- offered by the central bank.

However, despite the oversubscription of 3.5bn/-, the 182-day bill price and yield remained unchanged at 98/26 and 3.55 per cent on Tuesday compared to last bill auctioned at the end of last year.

During the last billed to be auctioned last year, Bank of Tanzania, sought to raise 75.7bn/-.

The public tendered 65.6bn/- through the 364-day and 182-day bills only while the 35-day and the 91-day bills were cancelled.

The government ended up taking only 64.5bn/- out of the tendered amount.



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