By BUUMBA CHIMBULUTHE quantum of bids for bonds and treasury bills will remain competitive and aggressive given the Government’s decision to limit its borrowing to the tender size.Government has continued to limit its borrowing through securities by ensuring that it only allocates bids to the tender size of K1.5 billion.The recent group of investors were those with greater risk appetite seeking higher yields in securities with significant upside potential.This is according to a paper dubbed: ‘Zambia in another successful bond auction: a confirmation of a change in sentiments’ conducted by Zanaco Bank.According to the paper, Zambia was expected to start experiencing new demand from relatively risk averse offshore investors.“We base the foregoing on a firm belief that the intersection IMF programme and a significant improvement in the macroeconomic environment will materially moderate the sovereign risk and hence attract relatively more risk averse investors who play a long term investment strategy and therefore target calm markets,” […]
‘TREASURY BILLS WILL REMAIN COMPETITIVE’
