Government, through the Bank of Botswana, raised P905 million through the over-subscribed auction of three Treasury Bills (TB) last week.
At the auction however, bidders showed strong interest in the securities on offer, with the 12-month TB attracting 10 bids worth P648 million for the P305 million on offer. The three-month TB received eight bids worth P550 million for the P300 million on offer, while the six-month TB had eight bids worth P440 million for the P300 million on offer. The TBs were all fully allotted, continuing a trend in recent auctions where investors have shown appetite for the shorter term securities offered by the central bank.
Yields on the three month TB declined marginally to 1.396% in the latest auction, from 1.408% in the previous, while the yield on the six-month TB fell to 1.505% from 1.509% over the same period. The yield on the 12-month TB dropped to 2.963% at the latest auction from 3.85% in January when the bill was previously offered. Trends in yields reflect the costs government incurs for securing debt from the capital market.