BOZ sells USD34mn worth of T-bills as subscription appetite continues to decline
The Bank of Zambia sold the Kwacha equivalent of USD34mn worth of treasury bills in Thursday 07 June auction. The ZMW950mn debt sale offer was undersubscribed with ZMW344mn allocated of the bids that totaled ZMW402.5mn. Appetite for 1 year outwit all other tenors with ZMW337mn allocated accounting for over 96% of the debt sale as players locked in a yield of 17.806%, 11bps higher than a fortnight ago at 17. 6955%.
Appetite for Kwacha government debt has declined over the last few months followed dampened investor confidence and drying liquidity in light of sentiment around Zambia’s fiscal position. The Bank of Zambia however has stepped up its efforts to widen the subscription pool by kicking of a local road show to all provincial centers to lure the retail space to participate in the local debt offerings.
Other tenors such as the 273 day are paying 13.5%, a 60bps rise from 12.9008% a fortnight ago.
Next auction will be held on Thursday 21 June at which ZMW950mn will be on offer.