The 364-day tenor recorded an oversubscription rate of 318.08 per cent after receiving bids worth Sh31.80 billion against an offer of Sh10 billion.
During the auction the 91-day tenor attracted Sh4.23 billion against an offer of Sh4 billion that was all accepted. In the past auctions, the 91-day tenor experienced sluggish uptake as investor focus shifted to the 364-day tenor.
Analysts said a dearth of newer short-term primary bonds has lifted the 364-day tenor.
The uptake of one-year tenor government paper continued to boost the performance of Treasury bills’ subscription at the weekly auction, recording an overall subscription rate of 207.63 per cent.
The 364-day tenor recorded an oversubscription rate of 318.08 per cent after receiving bids worth Sh31.80 billion against an offer of Sh10 billion.
The government accepted Sh21.33 billion from the offer.
During the auction the 91-day tenor attracted Sh4.23 billion against an offer of Sh4 billion that was all accepted. In the past auctions, the 91-day tenor experienced sluggish uptake as investor focus shifted to the 364-day tenor.
Analysts said a dearth of newer short-term primary bonds has lifted the 364-day tenor.
Overall, the Central Bank of Kenya (CBK) accepted Sh35.78 billion of the Sh49.83 billion bids received in the week.
Senior research analyst at Genghis Capital Churchill Ogutu on Friday said, currently, rates have come off 34.9 basis points (bps), 119.1 bps and 88.8bps in the 91-day, 182-day and 364-day tenors, respectively, post March 2018 MPC meeting.
“The next auction will likely see rates continue its downtrend,” said Mr Ogutu.
CBK data showed that yields came in at 7.656 per cent (91-day), 9.194 per cent (182-day) and 10.238 per cent (364-day) tenors.
The 182-day tenor received bids worth Sh13.78 billion against an offer of Sh10 billion. CBK accepted Sh10.21 billion from the offer.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
