Capital Markets

T-bills get cool reception at auction

cbk

Central Bank of Kenya building in Nairobi. FILE PHOTO | NMG

Treasury bills subscription plummeted at the weekly auction to post an overall performance of 63.71 per cent, weighted down by the 182-day and 364-day tenors.

The performance was partly attributed to the ongoing primary bond sale and some segments of the banking sector that experienced tighter liquidity, clipping the appetite for the securities.

During the auction, Central Bank of Kenya (CBK) received bids worth Sh15.28 billion against an offer of Sh24 billion.

The CBK accepted Sh15.18 billion.

Yields performance continued charting a downtrend which analysts termed the “new normal.”

“On a year-to-date basis, yields have fallen off 215 basis points (bps) and 154bps on the 182-day and 364-day tenors, respectively, to their current single-digit levels,” said Churchill Ogutu, a macro-economic and fixed income analyst at Genghis Capital.