CBK (Central Bank of Kenya) Accepted KSh42.6Billion out of KSh42.7Billion that investors had poured in bids at the weekly Treasury Bills Auction. This is an indication of the Government’s growing appetite for cash from the domestic money market to service its debt obligations that are falling due as well as finance its short-term liquidity requirements.
This pressure is seen as the CBK floated the second tranche of Treasury Bonds, in a fortnight, seeking for cash to finance the 2026/27 budget. Investors in the government securities market has, meanwhile responding to this growing appetite by asking for higher returns and heavily subscribing to the CBK offers.
At this week’s Auction, the 91-day short-term Treasury Bills were the most attractive, with the CBK accepting KSh 23.23 billion and offering bidders a return of 8.7837%.
The 182-day Treasury Bills also attracted strong demand with the state fiscal agent accepting KSh 10.05 billion out of the KSh 10 billion offered with a return of 8.9099%.
The one-year debt instrument recorded a slight undersubscription, with the CBK collecting KSh 9.42 billion out of KSh 10 billion on offer, as it rejected the rest of the bids.
CBK T-Bills Auction Results for the Previous Week
The week prior, Treasury Bills demand remained steady, with Investors submitting bids totalling KSh 55.51Billion, of which the fiscal agent accepted KSh 53.28Billion resulting in the subscription rate of 96% and a performance rate of 198%; lower than the subscription rate of 201%, recorded the previous week.
Again, the 91-day Treasury Bill remained the most attractive debt instrument, registering a performance rate of 370%. Last week’s auction was significantly oversubscribed, receiving KSh 30Billion in bids for the three-month instrument compared to the KSh 8.0 billion on offer.
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