Investor interest in Treasury securities inched up significantly despite the expected announcement of a debt restructuring programme by the government.

Government treasury bills sales grew by 48.4% week-on-week, as it got ¢2.76 billion during the last auction Thursday, December 2, 2022.

This is the third week running that the government T-bills have been oversubscribed.

Following the announcement of ‘haircut’ for government bonds, investors are now migrating to short-term securities, hence the growing interest.

For the first time in several months, the 182-day T bills also recorded huge participation as bids tendered were estimated at ¢519.87 million. ¢502.01 million was however accepted.

The yield was 37.2%, a little higher than the 36.37% the past week.

The bids tendered for the 91-day T-bills were estimated at ¢2.066 billion.  All the funds were accepted at an interest rate of 36.1%, about 0.56% increase.

The gradual improvement in liquidity is good for the financial sector.

But some market watchers are cautioning government to be careful about the debt restructuring programme in order to calm rumours and uncertainty.