Business

Treasury Bill auction undersubscribed

BOZ

TRYNESS TEMBO, Lusaka
LAST week’s treasury bill auction was undersubscribed attracting only K471.49 million against the K700 million offered by the central bank due to low interest by investors.
Meanwhile, the Kwacha is expected to continue trading on a strong foot against the United States (US) dollar due to strong interbank inflows.
Zanaco says of the total bid, K390.41 million was allocated and average yields rates generally remained unchanged except the 273-day rate that marginally dropped from 25.50 percent to 25.46 percent.
“The K700 million government treasury bills auction was undersub-scribed, receiving bids amounting to K471.49 million and a total of K390.41 million was allocated,” the bank says in its daily treasury newsletter.
On the Kwacha, the bank says the local unit is anticipated to trade in the range of K9.90 and K10.00 in the near-term.
“The Kwacha is expected to continue trading with a bullish [strong] tone against the dollar on the back of strong interbank inflows,” the statement reads.
On Thursday, the local unit recorded another strong session against the dollar as it gained for a second consecutive day.
Zanaco says market players posted the local unit at K10.10 and K10.15 to the dollar, five ngwee weaker than the previous day’s close.
The bank says the afternoon session witnessed healthy corporate and interbank dollar inflows to see the Kwacha reach a high of K10.00 and K10.05 on the bid and offer respectively where it closed for the day.
On the commodities market, copper prices on the London Metal Exchange (LME) recorded its biggest weekly loss in July and declined by 1.8 percent.
Reuters reports that three-month copper on the LME was up 0.4 percentage point at US$4,848 a tonne, after hitting US$4,786 on Thursday, its weakest since July 12.
“London copper ticked higher in thin trading on Friday but was headed for its biggest weekly loss in four, as traders cut positions ahead of a closely watched US jobs report and on the prospects of swelling supply,” Reuters reports.

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