DOMESTIC DEBT

Treasury misses target on weekly T-bill sales

National Treasury received bids worth Sh14.3 billion for 91-day, 182-day and 364-days Treasury bills

In Summary

•Interest rates on the 91-day and 182-day Treasury bills decreased, while that on the 364-day Treasury bill increased marginally

National Treasury Cabinet Secretary Ukur Yatanni.
National Treasury Cabinet Secretary Ukur Yatanni.
Image: EZEKIEL AMING'A

The uptake of short term government securities still swung low during the weekly auction as investors take caution over market uncertainties.

 During this week’s auction, National Treasury received bids worth Sh14.3 billion for 91-day, 182-day and 364-days Treasury bills, much lower than the Sh24 billion on offer.

This represents a 59.5 per cent subscription rate.

“Interest rates on the 91-day and 182-day Treasury bills decreased, while that on the 364-day Treasury bill increased marginally,” the Central Bank of Kenya said in its weekly bulletin.

The performance of the fixed income securities indicated a cuffed demand over the past two weeks with Sh8.52 billion worth of bids received during last week’s auction.

This is a significant decline given CBK- the government’s fiscal agent received bids worth Sh27.04 billion during the April 2 auction.

This underperformance could be held to commercial banks shying away from the treasury notes due to lower total returns.