(Business in Cameroon) - In Q2-2020, the treasury bills issued by Cameroon, Gabon, and Congo (to a lesser extent) were the most sought after, according to the quarterly bulletin recently published by the central bank BEAC.
The same source informs that during the period, subscriptions to the treasury bonds issued by Cameroon were the highest (83.8%).
The report further discloses that during the reference period, the bid-to-cover ratio in the CEMAC money market dropped even though treasury bills issuances were oversubscribed.
For instance, the average bid-to-cover ratio on treasury bills fell from 150.5% to 141.3% while that for treasury bonds fell from 112.7% to 76.6% quarter-over-quarter. “This indicates investors’ preference for short-term securities (treasury bills),” the BEAC comments.
This preference is due to the type of deposits made in banks that are the main investors in the CEMAC money market. Indeed, according to the BEAC, over 70% of bank deposits were overnight deposits, therefore, best suited for short-term investments only.
Brice R. Mbodiam