Rollovers mop Kwacha securities in oversubscribed debt sale

With maturities pushing liquidity over one and half yards (K1.5 billion) into Thursday 07 November, K950 million treasury bill sale, the Bank of Zambia successfully managed to raise K1,140 million. This is the fifth t-bill oversubscription of the year of 23 short term debt sales.

With appetite of about one and half yards (K1.47 billion) the central bank was able to absorb K1.14 billion in bids representing a performance 20% above it’s quota (120% oversubscription) with 85% housed in the 9 month to 1 year yielding 26.999% and 28.501% respectively.

Yields were unchanged across the spectrum. The central bank is expected to attempt to reign in on the targeted 6.5% fiscal deficit and as such will target to maximize proceeds from the few treasury bill and bond auctions to the end of the year.

The Kwacha Arbitrageur