Senegal accepted 74.377 billion CFA francs at its auction of treasury bills and bonds on 9 October, with a value date set for this Monday, 12 October. Results published by UMOA-Titres show average yields ranging from 7.82% to 8.16%, depending on maturity.
The state sought 80 billion CFA francs and received 84.407 billion in bids, a coverage ratio of 105.51%. The amount ultimately accepted nonetheless remains 5.623 billion below the initial target. Demand above the amount sought therefore does not mean that all bids were accepted.
The five-year tranche accounts for 47.2 billion CFA francs, ahead of the 364-day bills, which represent 20.698 billion. The three-year bonds complete the operation with 6.479 billion CFA francs. Nearly two-thirds of the amount accepted thus relates to the longest maturity offered at this session.
For investors, the average yield stands at 7.87% on the bills, 8.16% at three years and 7.82% at five years. These yields should be distinguished from the annual coupons on the bonds, set at 6.30% and 6.45% respectively. The three- and five-year securities were placed at an average price below their face value.
On the three-year tranche, the average price comes to CFA francs 9,522.18 for a security with a face value of 10,000 CFA francs. At five years, it stands at 9,450.40 CFA francs. The yield takes into account the purchase price as well as the expected interest and repayment, which explains why it differs from the coupon alone.
The bills mature on 10 October 2027, while the bonds are to be redeemed in October 2029 and October 2031. Interest on the bills is deducted upfront, while bond interest is paid annually.