Kenya Treasury bill rates decline by 63.8 percent in July

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T-bills subscription rates remained low throughout the month of July due to liquidity anomalies in the market, with subscription rates declining to an average of 63.8 percent  from 156.4 percent in June.

The subscription rates for the 91, 182 and 364-day papers came in at 59.9 percent, 76.5 percent and 52.6 percent from 246.5 percent, 172.4 percent and 104.5 percent the previous month, respectively.

The yield on the 91-day paper decreased to 8.2 percent from 8.3 percent in June, whereas yields on the 182 and 364-day papers remained unchanged at 10.3 percent and 10.9 percent, respectively.

According to Cytonn Investments July Report, “The Central Bank of Kenya (CBK) remained disciplined in stabilizing interest rates in the auction market by rejecting aggressive bids that were priced above market, leading to a decline in the overall bids acceptance rates.”

The 91-day T-bill is currently trading below its 5-year average of 9.3 percent.

“The lower yield on the 91-day paper is mainly attributed to the low interest rates environment we have been experiencing, and we expect this to continue in the short-term given,” says the Cytonn Analysts.

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