GOVERNMENT PAPER

Six-month, one-year T-bills oversubscribed at weekly auction

Bids worth Sh27.99 billion were received for the three-month, six-month and one-year government debt securities this week, against a target of Sh24.billion

In Summary

•Thursday’s auction saw the National Treasury rake in Sh3 billion less than the Sh31 billion worth of bids accepted during the previous week’s auction

•CBK received bids worth Sh52.18 billion, indicating an oversubscription for the short-term government securities

Treasury buildings.
UNPAID BILLS: Treasury buildings.
Image: FILE

The National Treasury surpassed its borrowing target for the weekly sale of Treasury bills by 117.42 per cent.

Data by the Central Bank of Kenya show that bids worth Sh27.99 billion were received for the three-month, six-month and one-year government debt securities this week, against a target of Sh24.billion.

T-bills are short-term instruments the government uses to raise cash to offset budget deficits.

During the week, CBK received bids worth Sh52.18 billion, indicating an oversubscription for the short-term government securities.

Thursday’s auction saw the National Treasury rake in Sh3 billion less than the Sh31 billion worth of bids accepted during the previous week’s auction.

CBK accepted bids worth Sh16.66 billion against a target of Sh10 billion it offered in the six-month T-bills.

The average interest on the 182-day T-bills increased marginally to 8.248 per cent from 8.229 the previous week. Subscription for the short-term debt facility stood at 176.2 per cent with bids worth Sh17.62 billion received.

For the one-year paper, CBK received bids worth Sh31.16 billion, more than three times the Sh10 billion on offer.

Average interest on the 364-day Treasury bills recorded a slight decrease to 9.873 per cent from 9.879 per cent recorded the previous week.

On the other hand, the three-month government paper was undersubscribed during the auction with CBK receiving bids worth Sh3.39 billion against the Sh4 billion on offer.

Average interest on the 91-day T-bills increased slightly to 7.3 per cent compared to 7.296 at the previous auction.