By Eswatini allotted SZL22.63 million of treasury bills at its 2 September auction, well below the SZL90 million offered, as investors submitted no competitive bids and took most of the available paper in the longer tenors.
The Central Bank of Eswatini said the government allotted SZL2.10 million of 91-day bills, SZL0.96 million of 182-day bills, SZL9.63 million of 273-day bills and SZL9.94 million of 364-day bills. The auction attracted only non-competitive bids, according to the central bank’s results notice.
The allotment rate was therefore 25.1% of the amount on offer. Demand was strongest in the 364-day line, where investors took nearly one-third of the SZL30 million available. The 273-day bill produced a similar result, while the 91-day and 182-day bills drew less than SZL3.1 million combined.
Average competitive yields listed for the four tenors were 7.092% for 91-day paper, 8.450% for 182-day paper, 8.900% for 273-day paper and 9.065% for 364-day paper. Because no competitive bids were received, those figures describe the last successful auction rather than prices formed in the 2 September sale.
The result gives investors little reason to chase the shortest bills. The spread between the last reported 91-day and 364-day competitive yields was 1.973 percentage points, offering a higher return to buyers willing to lock up funds for a year. That preference may also reflect limited liquidity or a cautious approach to reinvesting cash in the domestic market, although the auction notice does not identify the cause.
Eswatini’s next auction is scheduled for 9 September, with the same amounts on offer: SZL10 million of 91-day bills, SZL20 million of 182-day bills, and SZL30 million each of 273-day and 364-day bills. Settlement is due on 11 September. The central bank lists a minimum competitive bid of E5 million, in multiples of E5 million, while non-competitive bids start at E10,000.
For local banks and other investors, the next sale will show whether the weak participation was specific to the 2 September auction or part of a wider shift toward longer government paper. A second auction with no competitive bids would leave the central bank’s last reported yields as the main reference point for pricing, rather than providing a fresh market-clearing signal.
The auction data should be read carefully. A low allotment does not automatically mean that investors rejected Eswatini’s debt: the notice records the amount allotted, but it does not publish a full order book or explain whether potential buyers stayed out because of pricing, cash availability or portfolio limits. The absence of competitive bids means the market did not produce a new price at the sale. Investors will have to watch the 9 September result for evidence of stronger participation, especially if the central bank again offers SZL60 million in the two longer tenors.
Eswatini’s treasury-bill market is small, but its auctions matter for short-term liquidity management in the common monetary area that links the lilangeni to the South African rand. The outcome also provides a narrow read on local demand for government paper at a time when investors are balancing cash needs against the return available on longer maturities.
