Treasury bill undersubscribed by 3 percent

THE treasury bill auction held last Thursday was undersubscribed by about three percent as K1.26 billion was accepted against a targeted auction size of K1.3 billion.
According to Absa Bank Zambia Plc, yield rates remained unchanged except for the 364-day tenure, which was three basis points lower at 24.52 percent from the previous auction two weeks ago.
During the auction, yields on 91 days, 182 days and 273 days were maintained at 14 percent, 16 percent and 19.6501 percent respectively.
And the central bank said demand for government bonds during the third quarter has been relatively weaker due to investors’ expectations of high levels of short-term interest rates over the next few quarters.
Last Wednesday during a media briefing, Bank of Zambia (BoZ) Governor Christopher Mvunga said demand for treasury bills during the third quarter of the year was strong as the auctions attracted bids in excess of the amounts on CLICK TO READ MORE

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