Market players on Thursday 18 July government security sale sought to house their scarce liquidity in the one year tenor. Appetite measured in bids totaled K942 million of which 70% was absorbed at cost. One year treasury bills are paying 26.5% a level they have been on for the last 2 months.
Total bids recieved for the entire auction was just over one yard in Kwacha terms of which K687 million was allocated at cost. This debt sale is the fifteenth offering that adding to the list of underwater subscriptions widening to domestic funding gap for the ministry of finance.
Yields were unchanged as anemic demand was recorded in the other tenors. However after tax yields remain spreads below those of non deliverable forward rates making it unattractive for offshore participation.
Complied by Stacey Susa.