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The Reserve Bank of Zimbabwe (RBZ) said on Friday it received bids totalling $81 million against its biggest Treasury Bills (TBs) float to date of $300 million for 365 days.

The 27 percent subscription may indicate investor fatigue in the Government-issued debt instrument.

A number of financial players in the market currently hold the TBs, which experts say have largely been viewed as a safe and guaranteed investment in the current economic climate. The apex bank went into the market again last Wednesday with the fourth batch of TBs over a three-month period as it continues to raise funding for Government operations.

But unlike the previous three TBs auctions, which were all significantly oversubscribed, the fourth one received underwhelming reception from the market.

The three previous auctions — two in August, and one last month — have so far raised a quantum of $190 million in batches of $30 million, $60 million and $100 million. The country held its first TBs auction in early August — the first in a decade — after putting a stop to private issuances last year as excessive issuances of the paper had become a major source of macro-economic stability due to money supply growth.

With regards to the latest auction, the bills had an “open tender on a yield basis” interest rate and other special features which include prescribed and liquid asset status, tax exemption and acceptability as collateral for overnight accommodation at the central bank. — Business Reporter.