Bank of Zambia’s latest Treasury bill (T/bill) auction saw lukewarm demand as it only received bids worth K267.91 million out of at least K799 million offered – 3 times undersubscribed. The entire K267.91 million bid was allocated:
Yields on the 91, 182 273 and 364 days T/bills jumped by 36.8%, 5.5%, 11.8% and 12%, respectively from their October 31 numbers. This has been the biggest move for the 91 days T/bill which has remained largely flat for the most part of this year. The 364 day T/bill yield spiked back up to 20% after touching a 5 month low on October 31:
The Kwacha has remained relatively stable since the president died on October 28 (albeit with some central bank intervention) – trading in the K6.3 to K6.4 per US$ range.
The country is set to hit the polls in late January 2015 as they look to select a new president.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *