WEEKLY AUCTION

Investors opt for one-year T-bills, shun three and six-month government paper

The government’s fiscal agents received bids worth Sh16. 94 billion during Thursday’s auction, 69 per cent more than the Sh10 billion on offer for the 364-day T-bills

In Summary

•For the 6-month paper, investors placed bids worth Sh3.61 billion, against a target of Sh10 billion

•The 3-month paper only raised Sh549.29 million against the Sh4 billion on offer

The Central Bank of Kenya.
INTEREST RATE CAP: The Central Bank of Kenya.
Image: FILE

This week’s treasury bills were under-subscribed as investors leaned more towards the one-year government paper.

The Central Bank of Kenya received bids worth Sh21. 09 billion against a target of Sh24 billion.

The government’s fiscal agents received bids worth Sh16. 94 billion during Thursday’s auction, 69 per cent more than the Sh10 billion on offer for the 364-day T-bills.

For the 6-month paper, investors placed bids worth Sh3.61 billion, against a target of Sh10 billion while the 3-month paper only raised Sh549.29 million against the Sh4 billion on offer.

This, even as interest rates on all T-bills on offer increased marginally.

The average weighted interest on the 91 – day T-bills increased from 7.275 per cent last week to 7.313 per cent.

The rate for the 182-day T-bills rose to 8.104 per cent compared to 8.030 per cent during last week’s auction while the 364 – day government paper fetched 9.100 per cent from 9.051 per cent last week.

CBK accepted bids worth Sh21.03 billion during this week’s auction.

“The actual amount to be realised from the auction will be subject to National Treasury's immediate liquidity requirements for the week,” CBK said in its weekly auction results.