• About Us
  • Contact
Friday, March 31, 2023
No Result
View All Result
NEWSLETTER
The Business Wiz
  • Home
  • Featured News
  • Economic
    • Currency
  • Investment
  • Markets
    • Stock Market
  • Sectors
    • Agriculture
    • Commodities
      • Markets
    • Construction
    • Energy
    • Financial Services
    • Information Technology
    • Infrastructure
    • Manufacturing
    • Markets
    • Mining
    • Real estate
    • Telecomunication
    • Tourism
    • Transportation
  • Home
  • Featured News
  • Economic
    • Currency
  • Investment
  • Markets
    • Stock Market
  • Sectors
    • Agriculture
    • Commodities
      • Markets
    • Construction
    • Energy
    • Financial Services
    • Information Technology
    • Infrastructure
    • Manufacturing
    • Markets
    • Mining
    • Real estate
    • Telecomunication
    • Tourism
    • Transportation
No Result
View All Result
The Business Wiz
No Result
View All Result
Home Economic

20-Year Treasury bond oversubscribed by 20.5 pct

by Editor
30/09/2022
in Economic
0
20-Year Treasury bond oversubscribed by 20.5 pct
Share on FacebookShare on Twitter

The 20-Year Treasury bond issued by the Central Bank this week has been oversubscribed by 20.5 per cent on investors’ appetite for longer term papers.

The result echoes central bank’s efforts towards reducing liquidity in September and October accepting bids priced in discounts, a first for long dated bonds this fiscal year.

Bank of Tanzania Head Office in Dar es Salaam. The 20-Year Treasury bond issued by the Central Bank this week has been oversubscribed by 20.5 per cent on investors’ appetite for longer term papers. Photo / courtesy.

According to available data, the Central Bank was in the market offering 136.2bn/- to investors for a new 20-Year Treasury bond offering a 12.1% coupon rate annually.

The auction received bids totaling 164.2bn/- and accepted 136.9bn/- out of the 136.2bn/- sought.

The weighted average yield to maturity increased by 7.58 basis points in comparison to the previous auction held in late July this year from 12.0307% to 12.1065%.

Furthermore, the lowest bid tendered came in at 88 down from July’s 94 emulating the markets aggressive pricing.

The result echoes central bank’s efforts towards reducing liquidity in September and October accepting bids priced in discounts, a first for long dated bonds this fiscal year. Photo / Courtesy.

According to market analysts, bond yields continue to push higher on expectations of further central bank tightening.

The Zan Securities Chief Executive Officer Raphael Masumbuko said, “When we observe the auction result, the markets already pricing in a central bank tightening cycle. In light of the tight liquidity, we anticipate sustained low subscription rates for medium term papers and an aggressive pricing in upcoming auctions more so on the longer term papers”

Masumbuko noted that his firm expects a rebalancing for portfolio managers in preference for short duration papers less volatile to rising yields, as they will be keen on avoiding high duration instruments.

“Rising yields can create capital losses in the short-term, but can set the stage for higher future returns. When interest rates are rising, investors can purchase new bonds at higher yields. Over time, the portfolio earns more income than it would have if interest rates had remained lower,” he stressed.

Editor

Editor

Next Post
Dar-based firm eyes business training opportunities in EACOP project

Dar-based firm eyes business training opportunities in EACOP project

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Exchange Rate

Exchange Rate USD: Fri, 31 Mar.

Recommended

Bottlenecks hold back EAC trade despite strides, new report says

Bottlenecks hold back EAC trade despite strides, new report says

2 weeks ago
East Africa stock markets feel pinch as foreign investors exit

East Africa stock markets feel pinch as foreign investors exit

8 months ago

Popular News

    News

    Get latest news from us.


    SUBSCRIBE

    Category

    • Agriculture
    • Aviation
    • Banking
    • Commodities
    • Construction
    • CSR
    • Currency
    • Economic
    • Energy
    • Featured News
    • Financial Services
    • Information Technology
    • Infrastructure
    • Investment
    • Jobs
    • Manufacturing
    • Markets
    • Mining
    • Others
    • Q&A Interviews
    • Real estate
    • Telecomunication
    • Tourism
    • Transportation

    About us

    The Business Wiz (TBW) is Tanzania’s premier one-stop online platform providing in-depth, accurate and timely business news, analysis, commentary and online business information portals and research.

    • About Us
    • Contact

    © 2022 The Business Wiz

    No Result
    View All Result
    • Home
    • Featured News
    • Economic
      • Currency
    • Investment
    • Markets
      • Stock Market
    • Sectors
      • Agriculture
      • Commodities
        • Markets
      • Construction
      • Energy
      • Financial Services
      • Information Technology
      • Infrastructure
      • Manufacturing
      • Markets
      • Mining
      • Real estate
      • Telecomunication
      • Tourism
      • Transportation

    © 2022 The Business Wiz

    en English
    ar Arabiczh-CN Chinese (Simplified)en Englishfr Frenchde Germanit Italianru Russianes Spanishsw Swahili