Interest rates on Treasury bills have come down by between 0.37 and one percentage point in three weeks after heavy subscription.
This comes against the backdrop of an increase in interest for government paper by commercial banks given that lending rates are now capped thereby reducing the traditionally huge spread enjoyed by the institutions.
In the latest auction, the 91-day paper was sold at 7.986 per cent compared to 8.087 per cent at the end of last month – showing a downward change of 0.621 percentage points.
Investors subscribed for Sh9 billion even though only Sh4 billion was offered.
The 182- and 364-day paper were at 10.812 and 10.898 per cent compared to 11.182 and 11.982 per cent respectively hit at the end of August.
This shows that the rates on the six- and 12-month paper are down by 0.37 and 1.084 percentage points in three weeks.