By: Nghiinomenwa-vali Hangala
The tender result of the three Treasury Bills (T-Bills) auction that was carried out yesterday shows that investors have submitted bids worth N$3.3 billion in the quest to lend to the government through its short-term instruments.
This is in response to a tender invite where the government wanted to borrow N$1.4 billion through the four treasury bills, namely the 91-day T-bill, 182-day T-bill, 273-day T-bill, and 364-day T-bill.
The government sought N$370 million through the 91-day T-Bill, instead seeing N$555.8 million worth of bids during the auction seeking a growth avenue.
However, the government only ended up borrowing what it offered.
Through the 182-day T-bill government wanted the same amount (N$370 million), and during the auction N$968,5 million was submitted by the investors. This made it the most sought-after instrument at this auction. Again, the government only took the initial offered amount, nothing more.
As for the 237-day T-bill, which is the second-longest short-term debt option of the government, it also received plenty of capital in bidding – N$903.3 million – even though the government only required N$370 million.
The 364-day T-bill garnered 37 bids during yesterday’s auction, amounting to N$890.2 billion. However, the government only accepted the N$370 million it needed.
This means N$1.3 billion was unused at this auction, remaining with investors.
This is because all the T-Bills were oversubscribed, with three of them by more than 2 times. erastus@thevillager.com.na
