Are Treasury bills more attractive compared to GRZ Bonds?

Government securities in terms of Treasury bills have continued to perform positively, with the bills recording a continuous oversubscription compared GRZ bonds which have seen a reduced number in terms of investors wanting to invest.

The performance comes at a time when the country’s economy is reported to have stabilized with inflation sitting within the single digit target band and the exchange rate trading within the period of K18/$.

According to some experts in the financial space the positive performance seen in government securities in treasury bills is mainly due to investors opting for short-term instruments in T-B as opposed to GRZ bonds.

In an interview with Zambia Business Times-ZBT licensed Dealer’s representative Vedricah Langazye attributed positive performance due to investors finding the short-term instruments in T-bills more attractive compared to GRZ bonds which are long-term.

“Investors are looking at short-term investments, because treasury bills are short investment instruments and government bonds’ 5 year tenure has been removed for this entire year and basically that is what is contributing to investors finding Treasury bills more attractive as opposed to GRZ Bonds,” she noted.

She further mentioned that election uncertainty could have also been attributed to lower bids being recorded on bonds, because most investors tend to be hesitant considering that they are not sure of what the outcome of the elections will be after the elections.