THE Reserve Bank of Zimbabwe (RBZ) said on Friday its latest issue of Treasury Bills floated last 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, on Thursday. 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. — New Ziana