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HomeUncategorizedInactive money markets upset Treasury Bill auction

Inactive money markets upset Treasury Bill auction


BUUMBA CHIMBULU writes

THE Treasury Bill auction sale for Thursday was undersubscribed with only 23 percent bids being successful as the local money markets were inactive, says Barclays Bank Zambia in its market update.

According to the bank, the auction was undescribed with only 23 percent successful bids with yields on the 91 days tenor decreasing to 16.00 percent from 16.50 percent

“The yields on the 91 days tenor decreased to 16.00 percent from 16.50 percent with all other tenors remaining unchanged,” said the bank.

On the money market, the bank indicated that the volume of funds traded on the interbank closed at K340.00 million with the liquidity levels decreasing further to K566.47 million from K771.22 million.

The cost of borrowing funds, said the bank, on the interbank was flat at 10.28 percent.

Meanwhile, the Zambian Kwacha had continued to trade steady against the dollar as exporters and other corporates sold the greenback.

The local currency is in the near term anticipated to continue trading steady.   

Barclays bank Zambia said the Kwacha posted minor gains against the dollar on Thursday.

According to the bank, the local unity was likely to strengthen further as exporters and other corporates sold the greenback.

“At 08:00 Hrs. market open, commercial banks quoted the Kwacha at K12.825/12.875 per dollar, unchanged from Wednesday’s closing rate.

“The local unit traded firm to close the day 2.5 Ngwee stronger at K12.800/12.850 on the bid and offer respectively. Near term, the Kwacha is anticipated to trade steady,” said the bank.

And Cavmont bank Zambia daily market report said the currency pair seemed to have established a stable trading band of / between K12.800 and K12.900 as it continued trading within this range on Thursday.

The local unit, said the bank, began the day trading at K12.830 / K12.880 but was later seen being quoted at K12.800 / K12.850 by noon, a level it maintained until close of business.

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