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Investors bid Sh47 billion in T-bill sales

Central Bank of Kenya
The Central Bank of Kenya. FILE PHOTO | NMG 

Treasury bill sale at the CBK was once again heavily oversubscribed last week, benefitting from high liquidity due to government payments to its departments and agencies.

Central Bank of Kenya (CBK) data shows that investors put in bids worth Sh46.99 billion against the advertised Sh24 billion, with the regulator accepting Sh30.15 billion.

In the previous sale, investors had bid a massive Sh52.2 billion, out of which Sh27.99 billion was taken up by CBK.

The bulk of the bids last week came in the 364-day paper at Sh37.89 billion, with the 182-day and 91-day offers raising Sh6.44 billion and Sh2.65 billion respectively.

The heavy bidding is helping the Treasury in its bid to roll over maturing issues while at the same time making advances in its domestic borrowing target.

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In the past two weeks, maturities have totalled Sh46.42 billion, while the Treasury has realised a total of Sh58.14 billion from the floated offers. In February, total domestic debt maturities stand at Sh88.5 billion, all of which are in Treasury bills.

On the rates, the heavy investor appetite for the one-year paper saw its rate fall slightly last week by 2.3 basis points to 9.85 percent, while those of the less popular six-month and three-month papers went up by one and 1.4 basis points respectively to 8.258 and 7.314 percent.

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