Lebanese demand for TBs rises 69 percent
The level of TB subscriptions jumped almost 69 percent to LP416.16 billion ($276.1 million) at the February 15th auction, as the amount of maturing TBs rose sharply by 88 percent to LP342.92 billion ($227.5 million), resulting in an LP73.24 billion ($48.6 million) purchase surplus.
During recent weekly auctions, TBs have not been popular among banks, which account for the majority of TB subscriptions, as the Central Bank is possibly covering the lower sales while banks search for relative bargains in the secondary market.
Investors indulged in a rebalancing of portfolios, reducing their allocation of 24-M TBs to 29.13 percent from 52.44 percent, while the share of the short-term 3-M and 6-M maturities rose to a combined 43.43 percent, up from 27.12 percent a week before. The share of the 12-M TBs amounted to 27.44 percent of total purchase subscriptions, seven percentage points higher than that at the February 8th auction. There was no interest in the BDL’s LP certificates of deposit this week due to lack of demand. — ( Banque du Liban et d'Outre-Mer Sal )
© 2001 Mena Report (www.menareport.com)