Tanzania has seen higher appetite for government securities, with the Treasury bills auction held last week recording over-subscription.

The Bank of Tanzania had offered Tshs 170 billion in T-bills, comprising Tshs 169 billion on the competitive window and Tshs 1 billion as non-competitive.

The 35-day paper received bids worth Tshs1 billion; the 91-day paper received bids worth Tshs10.35 billion while the 182-day paper attracted Tshs 98.75 billion.

The Treasury only accepted Tshs 3 billion from the 91-day bids, and Tshs 65 billion from the 182-day offer.

According to the Bank of Tanzania, bids worth of Tshs265.28 billion were received on the competitive window, representing an over-subscription of Tshs 96.28 billion.

BoT accepted bids worth Tshs169 billion in face value, and Tshs 1,612.37 billion on the competitive window.

The auction was dominated by commercial banks, which accounted for 92.71 per cent of the total bids, followed by insurance companies with 4.68 per cent, pension funds with 1.12 per cent and other investors with 1.49 per cent.

The overall weighted average yield declined by 35 bps, reaching 4.84 per cent. The average price for the issue was 0.4859 per cent, with the lowest accepted price being 0.4149 per cent.

Market analysts at the central bank said that they expect demand to remain high for the shorter-term paper.