Treasury Bills’ demand surges
Feb 27, 2006
DEMAND for Treasury Bills (TBs) surged in January with bids reaching sh174.3b against Bank of Uganda’s (BOU) offer of sh95b, BOU’s acting director of research has said.
By Sylvia Juuko
DEMAND for Treasury Bills (TBs) surged in January with bids reaching sh174.3b against Bank of Uganda’s (BOU) offer of sh95b, BOU’s acting director of research has said.
Mary Katarikawe said recently that TB bids recovered to sh174.3b in January from sh95b in December as the seasonal preference for currency subsided.
“The increase reflects a decline in demand for currency in January. Banks lower their TB bids in the festive season to meet the increased demand for currency,†Katarikawe said.
Discount rates stabilised by the end of January with the 91-day and 182-day TBs stagnating at 7.6% and 8.5% respectively.
However, rates on the 364-day TBs declined marginally to 9.3% at the end of January from 9.9% in December.
Compared with the same period last year, the rates have dropped with the 91-day, 182- day and 364-day TBs at 8.92%, 11.48% and 11.92% respectively.
DEMAND for Treasury Bills (TBs) surged in January with bids reaching sh174.3b against Bank of Uganda’s (BOU) offer of sh95b, BOU’s acting director of research has said.
Mary Katarikawe said recently that TB bids recovered to sh174.3b in January from sh95b in December as the seasonal preference for currency subsided.
“The increase reflects a decline in demand for currency in January. Banks lower their TB bids in the festive season to meet the increased demand for currency,†Katarikawe said.
Discount rates stabilised by the end of January with the 91-day and 182-day TBs stagnating at 7.6% and 8.5% respectively.
However, rates on the 364-day TBs declined marginally to 9.3% at the end of January from 9.9% in December.
Compared with the same period last year, the rates have dropped with the 91-day, 182- day and 364-day TBs at 8.92%, 11.48% and 11.92% respectively.