Government securities market exhibits mixed performance in January 2023

Government securities primary auctions exhibited mixed performance in January 2023, with Treasury bills recording a robust performance relative to Treasury bonds.

According to the Bank of Tanzania (BoT) Monthly Economic Review for January, 2023, during the month, the Bank conducted one Treasury bills auction with a tender size of 177.4bn/-

“The auction was oversubscribed receiving bids worth 266.2bn/- of which 229.8bn/- were successful,” the report says.

Weighted average yield increased to an average of6.78 percent from 6.11 percent in the preceding month.

The Bank of Tanzania also conducted 2-, 5- and 15-year Treasury bond auctions with a combined tender size of 405.2bn/- for government budgetary financing.

The auctions were undersubscribed receiving bids amounting to 276.8bn/- , of which 227.6bn/- were successful.

Yields to maturity increased to 9.37 percent, 9.67 percent and 11.43 percent for the 2-, 5- and 15-year Treasury bonds, respectively.