The Bank of Zambia recorded 28% purchasing power in Thursday 01 August treasury bill sale with K950million on offer. The entire anaemic appetite of K334million in bids was absorbed with K270million allocated at cost.
Yields edged higher in the 9 months and 1 year by 75bps and 25bps to 26% and 26.75% respectively. The debt sale was heavily skewed towards the 1 year.
“The key determinant of the treasury auction performance is commercial banks inventories of securities which are also being rolled out as they mature. Savings are being kept out of the government security markets by restrictions that the BOZ give for individuals to deal directly with them. Considering that they are carrying out raid shows to encourage citizens to participate in the securities market, the central bank should consider dealing directly with individuals and lift the prescribed cap,” Munyumba Mutwale Managing Partner at Nikiwa Capital said in his morning commentary on MoneyFMs Behind the Markets show.
This treasury bill auction marks the fifteenth undersubscription of the sixteen debt sales year to date.
