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Last week’s Treasury bill auction was under-subscribed after the government attracted bids worth K1.73 billion against securities worth K2.2 billion offered to investors.
According to Bank of Zambia (BoZ) results for Treasury Bill Tender Number 16/2026 held on Thursday, August 20, 2026, the central bank received total bids amounting to K1.73 billion at face value, while K1.57 billion at cost was accepted.
The outcome indicates that demand for government securities fell short of the amount initially targeted, with investors showing varying levels of interest across the different maturities.
The strongest demand was recorded for the 364-day Treasury bills, where the Government offered K730 million and received bids amounting to about K983 million.
The central bank accepted K978.50 million in bids under the 364-day tenor, making it the only maturity to attract bids significantly above the amount offered.
For the 273-day Treasury bills, K530 million was offered, but investors submitted bids amounting to approximately K185 million. The Government ultimately borrowed K184.60 million.
The 182-day tenor attracted weaker demand, with K500 million offered against bids worth K181.73 million.
The Government accepted K173.53 million.
Meanwhile, the 91-day Treasury bills also recorded an under-subscription, with K440 million offered and K238.32 million borrowed.
The results show a marked preference among investors for longer-dated securities, particularly the 364-day instruments, compared with shorter maturities.
Treasury bills are short-term Government securities used to raise funds for public financing needs and manage liquidity in the financial system.
The level of investor demand at Treasury bill auctions is closely watched by the market because it can provide an indication of liquidity conditions, investor appetite for Government paper and expectations regarding interest rates.
The latest under-subscription comes as the Bank of Zambia continues to implement measures aimed at improving liquidity conditions in the domestic financial system.
The central bank recently reduced the statutory reserve ratio for Kwacha deposits, a move intended to
Treasury bill auction under subscribed.
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