Bank of Mauritius rejects 91-day T-bills bids for 3rd week
Bank of Mauritius rejected for a third consecutive week all bids for its 91-day Treasury bills on Friday but sold 785 million rupees ($26.98 million) worth of 182- and 364-day bills, posted at a bank rate of 2.48 percent.
Offers for the 91-day paper totalled 265 million rupees. The bids ranged between 3.20 percent and 1.40 percent. The central bank was not immediately available for comment.
Yields on the three-month paper sank to a record low on Feb. 4 and then fell further to 1.73 percent three weeks ago.
Mauritius is mulling a cap on how much commercial banks can hold in Treasury bills to encourage them to lend to companies and households instead.
The central bank raised banks' reserve requirements to 7 percent from 6 percent last week, citing the need to tackle excess liquidity.
