CBK(Central Bank of Kenya) received bids worth KSh 69.2 billion at the weekly Treasury Bills Auction, out of KSh 28 billion offered, an oversubscription of 247.4%. All the three short-term government paper received an oversubscription as investors rushed in to get returns.
CBK accepted KSh 56.7 billion at this auction, made up of KSh 44.8 billion in competitive bids and KSh 11.8 billion in non-competitive bids.
The most attractive instrument was the 91-day Treasury Bill which attracted bids worth KSh 31.7 billion out of the KSh 8 billion that the state fiscal agent had offered to bidders. CBK accepted KSh 30 billion, an oversubscription of 396.12%.
The 182-day Treasury Bills attracted bids worth KSh 22.3 billion out of the KSh 10 billion offered, a performance rate of 223.25% with KSh 20.1 billion in bids accepted.
The 364-day Treasury Bills attracted bids worth KSh 15.2 billion out of the KSh 10 billion offered with the state fiscal agent accepting KSh 6.6 billion while rejecting the rest of the bids, a performance rate of 152.42%.
During last week’s Treasury Bills auction, Investor appetite was high with total submitted bids increasing to KSh 68 billion compared to KSh 52 billion the week prior. The state fiscal agent accepted KSh 53 billion, an oversubscription of 241%.
With the Government expected to lean heavily on the domestic market to plug its budget deficits, borrowing demands will likely stay high, keeping consistent upward pressure on local yields over the medium term despite high liquidity conditions.
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