The government raised Sh11.75 billion, less than half of the Sh24 billion target from last week’s Treasury bill auction, the Central Bank of Kenya said in an update.
Central Bank, the government’s fiscal agent, said the sale of three, six- and 12-month securities missed their targets.
Bids worth Sh1.12 billion were accepted from the sale of 91-day T-bills against Sh4 billion target at an average interest of 7.25 per cent, which is slightly lower from 7.298 per cent the previous week.
The sale of 182-day T-bills raised Sh1.19 billion against a target of Sh10 billion at an average rate of 7.958 per cent, compared to 8.006 per cent previously.
About Sh9.45 billion was raised from the auction of one-year paper against a Sh10 billion target at an average interest of 9.32 per cent, slightly higher than 9.315 per cent in the previous auction.
“Interest rates on the 91-day and 182-day Treasury bills declined during the auction, while the interest rate on 364-day Treasury bills remained stable,” CBK said in its weekly bulletin.
The government raises cash for short-term budgetary support through the T-bills.
