CBK data shows that the regulator accepted a total of Sh132.6 billion from investors in the past five T-bill auctions, against maturities worth Sh144 billion.
The State failed to raise enough in Treasury bill auctions since the beginning of the year to roll over maturing short-term debt despite all the sales being oversubscribed, illustrating the growing burden to refinance domestic debt.
Central Bank’s data shows that the regulator accepted a total of Sh132.6 billion from investors in the past five T-bill auctions, against maturities worth Sh144 billion.
In the 2019/2020 fiscal year, the Treasury is in the market for Sh514 billion from the domestic market, comprising new borrowing of Sh391.4 billion and net repayments worth Sh122.6 billion.
T-bills account for 29.7 percent of the Sh2.93 trillion domestic debt, with this share having fallen from a high of 38.6 percent in October 2018. Heavy maturities amid reduced demand by investors have contributed to the fall.
In last week’s auction, the 91-day, 182-day and one year papers together raised Sh36.2 billion bids, out of which the CBK accepted Sh31 billion. Maturities for the week stood at Sh34.94 billion, meaning the government made net repayment of Sh3.9 billion.
Yields on all three tenors increased marginally by between 1.7 and two basis points to 7.296 percent for the 91-day, 8.229 percent for the 182-day and 9.879 percent for the 364 day papers.
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Note: The results are not exact but very close to the actual.
