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Investors rush for bonds as T-bill rates fall behind
T-bill rates stood at between 16 and 16.9 percent in July 2024, while bonds sold in that period were offering yields of between 16.3 and 18.1 percent for durations of between two and nine years.
Investors in government securities have raised their appetite for bonds compared to Treasury bills in recent auctions, chasing higher returns as the spread in rates between the short and long dated papers widens.
The last three T-bill auctions have failed to hit the usual weekly target of Sh24 billion, raising Sh22.75 billion, Sh21.76 billion and Sh14.48 billion. In contrast, sales done over the preceding four weeks had yielded offers of between Sh27 billion and Sh61 billion each.
