Government securities market records mixed performance in February 2023

Government securities’ primary auctions exhibited mixed performance during February 2023, with Treasury bills auctions recording a stronger performance than Treasury bonds auctions according to the Bank of Tanzania (BoT) Monthly Economic Review for March, 2023.

During the month, the Bank conducted two Treasury bills auctions, with a total tender size of 334.9bn/ to cover for government budgetary operations and liquidity management.

The auctions were oversubscribed by more than twofold, receiving bids amounting to 848.4bn/- , of which 410.9bn/- were successful.

Consistently, weighted average yield decreased to an average of 6.34 percent from 6.78 percent in the preceding month. During February 2023, the Bank of Tanzania conducted 10- and 20-year Treasury bond  auctions for government budgetary financing, with a combined tender size of 287.4bn/-  

The 10-year bond auction was however undersubscribed, receiving bids worth 75.3bn/-against the 133.6bn/- offered, while the 20-year bond auction was oversubscribed with bids amounting to 344.2bn/- compared with the tender of 153.8bn/-.

Successful bids amounted to 342.2bn/- . Yields to maturity increased to 11.05 percent and 12.61 percent for 10- and 20-year Treasury bonds, respectively.