Market News

T-bill uptake back in the positive after nine weeks

CBK

The Central Bank of Kenya (CBK) building in Nairobi. FILE PHOTO | NMG

Investors largely took up the short-term government paper for the first time in nine weeks signalling improved liquidity.

The Central Bank of Kenya (CBK) received bids worth Sh25.4 billion, accepting Sh23.8 billion for the Treasury bills.

All the issues were over subscribed with the 91-day paper yield remaining constant at 8.015 per cent while the 182-day issue rose marginally to 10.488 per cent from 10.433 per cent. The 364-day paper rose to 11 per cent from 10.995 per cent.

“We close the week on a high note expecting turnover to hold at the current levels and improvement in the coming week,” said Genghis Capital Ltd analysts in a market brief on Friday.

The three-month paper that targeted Sh4 billion attracted bids worth Sh6.8 billion, which was fully absorbed by the Treasury.

This represented a 171.2 per cent subscription rate. However, the six-month tenor received bids worth Sh5.8 billion against a target of Sh10 billion, a 58 per cent subscription rate. From the bids the government absorbed Sh5.3 billion.

For the one-year tenor paper, the government took Sh11.6 billion from Sh12.7 billion bids received. The paper targeted to raise Sh10 billion from the market but recorded a 127 per cent subscription rate.