T-bill sale rebounds as liquidity improves

Improved liquidity coupled with a dearth of short-end primary bond issues has seen a rebound in Treasury bill performance in recent auctions.

During last week’s sale, the Treasury bills were oversubscribed with the Central Bank of Kenya (CBK) getting bids of Sh25.12 billion against an offer of Sh24 billion.

This was the second consecutive auction where yields on all the tenors declined.

“Treasury bills performance recorded an overall 104.68 per cent subscription. The 182-day tenor recorded an under-subscription at 84.26 per cent, which we view as just investors’ preference for the other two tenors,” said analysts from Genghis Capital on Friday.

The subscription rates for the 91-, 182-, and 364-day papers came in at 124.17 per cent, 84.26 per cent, and 117.32 per cent respectively.

READ: Treasury payouts pump money into T-bill market

The 91-day paper attracted bids worth Sh4.96 billion against an offer of Sh4 billion. The Treasury absorbed the entire bids offered by investors.

The 182-day paper attracted bids worth Sh8.42 billion against an offer of Sh10 billion. The Treasury absorbed the entire bids.

The 364-day paper attracted bids worth Sh11.73 billion against an offer of Sh10 billion with the government accepting bids worth Sh10.81 billion.