Bank of Zambia treasury bill auction reportedly oversubscribed by 54 percent

The Bank of Zambia’s (BoZ) latest treasury bill auction was reportedly oversubscribed by 54 percent, reflecting strong investor appetite for government securities despite a challenging market environment.

Results of Treasury Bill Tender No. 14/2026, conducted on July 9, show the central bank received bids worth more than K3.3 billion against an offer of K2.2 billion.

The oversubscription meant demand for treasury bills exceeded the amount Government initially sought to raise.

According to the BoZ Financial Markets Department, the central bank accepted about K2.59 billion at cost from total bids amounting to K3.69 billion in face value.

The 364-day treasury bill attracted the strongest investor demand, receiving bids worth about K1.93 billion against an offer of K730 million.

However, the central bank allotted K930.33 million.

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In the 273-day tenor, BoZ raised K489.64 million against an offer of K530 million.

The 182-day treasury bill also attracted strong interest, with bids of K662.86 million against K500 million on offer.

The central bank accepted K661.37 million.

Meanwhile, K508.93 million was allotted under the 91-day treasury bill, exceeding the K440 million initially offered.

On the foreign exchange market, Absa Bank Zambia said the kwacha recovered some of its losses against the United States dollar on Friday, supported by healthy foreign currency inflows that adequately met market demand.

The local currency opened trading at K18.05/K18.10 per US dollar before strengthening by five ngwee to close at K18.00/K18.05 on the bid and offer, respectively.

Absa Bank expects the Kwacha to remain range-bound in the near term, with movements largely determined by prevailing foreign currency supply and demand conditions.

On the commodities market, copper prices edged higher on Friday as a weaker US dollar and easing concerns over escalating tensions between the United States and Iran improved investor sentiment.

Benchmark three-month copper on the London Metal Exchange gained 0.29 percent to US$13,528 per tonne, while the most-active copper contract on the Shanghai Futures Exchange rose 1.61 percent to 103,950 yuan (US$15,334.80) per tonne.

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