Improved liquidity driven by government disbursements continued to sustain a healthy subscription of the Treasury bills at last week’s auction.
The Treasury managed to collect Sh27.45 billion out of a target of Sh24 billion offered by investors.
Investors had bid Sh33.72 billion, a 140.53 per cent demand.
However, the yields on the tenors fell across the board at the auction.
For the 364-day paper, Central Bank of Kenya (CBK) reined in aggressive bidding by rejecting Sh5.88 billion competitive bids.
“Weighted average interest rate of accepted bids was 8.033 per cent (91-day paper), 10.403 per cent (182-day), and 11.154 per cent (364-day),” CBK said.
Market analysts said the ongoing primary bond auction seems not to have deterred Treasury bill subscription, underscoring the elevated liquidity in the market.
During the auction, the three-month paper attracted bids worth Sh4.67 billion from investors against a target of Sh4 billion, with the Treasury accepting Sh4.28 billion. This was 116.84 per cent subscription rate.
The six-month paper attracted bids worth Sh11.21 billion which was entirely absorbed by the government against a target of Sh10 billion, a 112.19 per cent subscription rate. On the one-year tenor, the government absorbed Sh11.95 billion, from Sh17.83 billion worth of bids.
CBK had offered Sh10 billion for the tenor. The subscription rate was at 178.34 per cent.
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