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Capital Markets

One-year bill lifts uptake at auction

Investment brokers on the NSE trading floor.
Investment brokers on the NSE trading floor. FILE PHOTO | NMG 

The uptake of the one-year government paper boosted the subscription of Treasury bills at the weekly auction, recording a 120.87 per cent performance rate up from 85.9 per cent recorded the previous week.

The 364-day tenor posted a performance of 185.30 per cent after receiving bids of Sh18.52 billion against an offer of Sh10 billion. Central Bank of Kenya (CBK) accepted Sh15.11 billion.

The auction was able to attract bids worth Sh29 billion against an offer of Sh24 billion, with CBK accepting Sh23.44 billion worth of bids received.

Yields fell 0.9 basis points (bps), 5.6bps and 3.2 bps for the 91-day, 182-day and 364-day tenors respectively.

“Market weighted average interest rate came in at 7.600 per cent (91-day), 8.590 per cent (182-day) and 9.638 per cent (364-day), respectively,” data from CBK showed.

Analysts have said Treasury bills yields have continued to maintain the downward trajectory. They expect inflationary pressures stocked by the fuel Value Added Tax (VAT), may see upward reversal in the yield movement in the last quarter.

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