The Treasury last week accepted bids worth Sh20.4 billion, at a weighted average rate of 10.475 per cent from the bill.
The six-month paper was attractive to investors for weeks because it offered higher return on a risk-adjusted basis compared to the other two papers.
The government raised Sh32.88 billion despite targeting only Sh24 billion from the 91-, 182- and 364-day Treasury bills it floated last week due to high liquidity.
The 182-day paper, which resumed auction last week after being out of the market for the previous eight weeks, attracted bids worth Sh25.37 billion.
The Treasury accepted bids worth Sh20.4 billion, at a weighted average rate of 10.475 per cent from the bill.
“The money market was relatively liquid during the week ending April 26, 2017. Commercial banks’ excess reserves above 5.25 per cent averaging requirement increased to Sh14.2 billion, from the previous week’s Sh8.8 billion,” said Central Bank of Kenya (CBK) in the weekly bulletin.
In early March, CBK had opted not to issue the heavily oversubscribed 182-day paper to avoid heavy maturities in six months by pushing investors to bid on the 91- and 364-day papers.
The six-month paper was attractive to investors for weeks because it offered higher return on a risk-adjusted basis compared to the other two papers.
In the absence of the 182-day paper, the Treasury was able to raise Sh60.8 billion out of the targeted Sh80 billion from the 91-day paper. And from the 364-day paper it raised Sh107 billion out of the targeted Sh80 billion.
During the last week of April, Treasury bills were oversubscribed for the 13th week running, with overall subscription though coming in at 103.1 per cent compared to 166.7 per cent recorded the previous week.
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