Money market dealers said the performance of the six-month yields were converging with the shorter-term paper’s making it unattractive.
Lower yields have for weeks depressed the uptake of the six-month Treasury bills compared to the three-month and one-year issues.
In the last five auctions, the Treasury has offered Sh18 billion worth of the 91-day bills, Sh20 billion worth of the 182-day T-bills and Sh22 billion worth of the one-year debt.
Auction results show that the 182-day attracted just Sh5.7 billion in offers as the others were oversubscribed.
Money market dealers said the performance of the six-month yields were converging with the shorter-term paper’s making it unattractive.
At the last auction the 91-day yield stood at 8.6 per cent while the 182-day was 8.7 per cent.
“Investors see more sense in going for the 91-day paper than the 182 one at the current rates since this means they can earn in three months the same return that they would in six months,” said Commercial Bank of Africa senior dealer Joshua Anene.
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