T-bill rates invert as investors raise risk premium on state debt

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The National Treasury building in Nairobi in this picture taken on March 15, 2023. PHOTO | DENNIS ONSONGO | NMG

The yield on the 91-day Treasury Bill has raced ahead of the 182-day T-bill, signalling heightened investor concern over the government’s near-term fiscal position in a tough economic climate.

The rare inversion on the shortest end of the government’s yield curve leaves the Treasury facing elevated finance costs in the short term, given that the performance levels of the 91-day have outstripped the six-month and one-year papers.

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