By MAIMBOLWA MULIKELELA –
THE Bank of Zambia (BoZ) has  received bids amounting to K2.1 billion in bonds that were oversubscribed auction  on Friday last week.
This was the third auction held this year.
According to Zanaco treasury newsletter, the third auction held in this year’s calendar was oversubscribed receiving bids amounting to K2, 105.19 and only K1, 252.41 allocated.
This saw interest rates on all tenors drop, with those for two years at 17 per cent and the three year at 17.93 per cent.
The five year paper now stands at 17.47 per cent while the seven and 10 yearbonds stand at 18.49 per cent and 18.25 per cent respectively.
On the money market, the report indicated that the liquidity levels in the market increased to levels of K574.36 million from a close of K499.89 million  previously.
Consequently, the volume of funds traded fell to K147.50 million from K169 million.
The report said the overnight lending rate also decreased to 12.20 per cent from 12.21 per cent.
Meanwhile, the Kwacha added to its gains against the dollar on Friday, with main support of the local currency coming from healthy corporate inflow and interbank trades.
From an open of K9.200/9.250 per dollar, 3.5 ngwee weaker than the previous day’s close.
It further indicated that the Kwacha was propped up to an intraday high of K9.100/9.150 by strong dollar selling by exporters while demand waned in comparison.
The local currency appreciated by 10 ngwee.
The report further states that  the near term outlook for the Kwacha remains bullish with the local currency likely to make further gains againstthe dollar supported by strong corporate dollar selling.