By MAIMBOLWA MULIKELELA –
THE Government treasury bills auction that took place last Thursday was oversubscribed receiving bids amounting to K1 369.46 million against the K900 million on offer.
According to Zanaco daily treasury newsletter, Government treasury bills auction was oversubscribed with a total of K1 080.00 million allocated and yield rates generally remained unchanged.
The report indicates that the 364-day yield rate marginally dropped to 24.95 per cent from 24.99 per cent.
It further states that market liquidity slightly reduced, closing at K2 614.68 million from K2 703.38 million.
The report indicates that the amount of funds traded on interbank dropped to K40.40 million from K46.40 million.
The weighted average overnight interbank rate was posted at 16.16 per cent from the previous day’s 16.15 per cent.
On the local currency market, the Kwacha strengthened against the United States (US) dollar on Thursday buoyed by slackening dollar demand and inflows of hard currency from corporate sellers and interbank market.
From an open of K9.79/K9.84 per dollar, one ngwee higher than the previous day’s close of K9.80/9.85, the Kwacha was propped up to a high of K9.78/9.83 by strong dollar selling by corporate and interbank whilst demand waned in comparison.
It eventually closed the day at its high—up by two ngwee.
On Friday the Kwacha traded quietly ahead of the Christmas holiday and was expected to be capped between 9.80 and K9.80.