Page 8 - June 2017

Financial and Business Services (30 per cent) and Public Nonfinancial Corporations sectors (29.5
per cent).

During June 2017, the auctions of Government of Mauritius securities were largely
oversubscribed, reflecting the level of excess reserves in the banking sector. Government of
Mauritius Treasury Bills (GMTBs) for a nominal amount of Rs4,400 million was issued for tenors of
91-Day, 182-Day and 364-Day; while maturing GMTBs had amounted to Rs7,713 million. Bids
received totaled Rs11,900 million. Between May and June 2017, the average weighted yields on the
91-Day, 182-Day and 364-Day Bills decreased by 40, 7 and 11 basis points, respectively. The overall
weighted yield decreased by 13 basis points, from 2.23 per cent in May 2017 to 2.10 per cent in
June 2017.

In June 2017, the 2.90% Benchmark Three-Year Treasury Notes maturing 17 February 2020
and the 3.25% Five Year Government Bonds were re-opened. Bids for a total nominal amount
of Rs5,200 million were received for the Three-Year Notes compared to the tender amount of
Rs1,800 million, representing an oversubscription of Rs3,400 million or a bid-cover ratio of 2.9.
Compared to the last auction in May 2017, the weighted yield dropped by 17 basis points, from
3.17 per cent to 3.00 per cent. The Five-Year Bond auction for a tender amount of Rs2,000 million
was also oversubscribed with bids received totalling Rs6,200 million, thus giving a bid-cover ratio
of 3.1. The weighted yield for the Five-Year Bond decreased by 50 basis points to 3.49 per cent,
from 3.99 per cent registered at the last auction held in April 2017.

To effectively manage its cash flow, the Government started buyback operations as from
January 2017. In June 2017, the government conducted two reverse auction for a total nominal
amount of Rs2,000 million. An amount of Rs300 million was repurchased for the 3.88% Three-Year
Government of Mauritius Treasury Notes maturing on 25 July 2017.

The Bank pursued its open market operations for liquidity management purposes. During
June 2017, the Bank conducted operations to the tune of Rs10,100.5 million to mop up excess
liquidity in the banking system. During the month under review, Bank of Mauritius Bills for a total
nominal amount of Rs7,400 million were issued in the 91-Day, 182-Day and 364-Day tenors for
short term liquidity management. The overall weighted yield across the three maturities stood at
2.12 per cent, with weighted yields in the 91-Day, 182-Day and 364-Day at 1.96 per cent, 2.02 per

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