Dar es Salaam, Sept. 9 -- THE fixed-income market is sending mixed signals to investors and policymakers. The Bank of Tanzania (BoT), last Wednesday, auctioned a 20-year government bond, offering 244.008bn/- to the market. Investors responded with overwhelming demand, tendering 829.484bn/-, more than three times the offered amount.

Yet the central bank accepted only the exact offer, consistent with its recent policy of limiting excess liquidity absorption. The auction cleared at a Weighted Average Yield to Maturity of 13.5510 per cent, down nearly 95 basis points from the previous 14.5 per cent.

Alpha Capital Head of Business Development and Customer Service Mr Geofrey Kamugisha said that oversubscription in both long-term bonds and T-b...