Market analysts said the ongoing primary bond auction seems not to have deterred Treasury bill subscription, underscoring the elevated liquidity in the market.
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.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
