According to available data, the treasury bill (T-bill) was heavily subscribed, attracting bids of P756 million against the P340 million on offer. The Bank of Botswana, government's agent in the debt programme, accepted 20 of the 30 bids made fixing the stop out yield at 5.05 percent.The stop-out yield represents the lowest price at which a treasury bill is sold at, or the highest yield the Bank of Botswana (BoB) was willing to give auction participants.
Trend analysis of the most recent treasury bill auctions indicates that last Friday's stop-out yield is generally within the range of yields seen in auctions of six-month treasury bills in the last 18 months.Stop out yields on the four six-month T-Bills auctioned since March last year have ranged between 5.01 percent and 5.06 percent.By contrast, stop out yields on the three-month T-Bill, which was introduced last September, have increased from 5.04 to 5.38 percent at the last auction in March this year.Bid to cover ratios, which compare the number of bids received to the number of bids accepted to gauge the success of an auction, have been well above 2:1 in auctions of the six month T-Bills in the last 18 months.
