TBs under-subscribed

The Reserve Bank of Zimbabwe (RBZ) said on Friday its latest issue of Treasury Bills floated this week got less than half of the $150 million it sought to raise to finance government operations.

It issued the 365-day paper, its fifth TB issue since the central bank resumed the public auctions, last week.

Results of the offer show that the RBZ got total bids amounting to $72 million, and only allotted $51 million.

The highest interest rate on offer was 45 percent, lowest 12 percent and average 15,49 percent.

This is the second under-subscription of long-term TBs in a row after another for $300 million only secured $81 million last week.

Market watchers said this was an indication investors were less keen on long-term paper, compared to short-term TBs.

Previous RBZ offers of short-term TBs a few months ago were heavily over-subscribed by investors. — New Ziana.

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