State debt gets more takers Jan

Treasury bills subscription slightly improved in the first week of 2018, recording 85.33 per cent performance against 80.83 per cent in the last week of December.

Central Bank of Kenya (CBK) collected Sh18.21 billion from bids worth Sh20.47 billion against a target of Sh24 billion.

The 91-day paper recorded 89.58 per cent performance with the Treasury receiving Sh3.25 billion out of Sh3.58 billion against a target of Sh4 billion.

The 182-day paper attracted Sh9.75 billion against a target of Sh10 billion, 97.55 per cent performance. The Treasury absorbed Sh9.70 billion from the tenor.

The 364-day paper received the least attention recording 71.41 per cent performance and attracting bids worth Sh7.14 billion against a target of Sh10 billion. The Treasury absorbed Sh5.24 billion.

“The weighted average interest rate for 91-day paper was 8.087 per cent, 182-day was 10.686 per cent and 11.193 per cent for the 364-day paper,” indicated a CBK update.

The three-month paper yield was at 8.080 per cent, six-month tenor at 10.685 per cent and one-year paper at 11.162 per cent.

During the last week of 2017, the underperformance was attributed to banking players shoring up deposits ahead of the New Year.