Yields on Kenyan Treasury bills dip at Thursday’s auction.
David Indeje
Yields on Kenyan Treasury bills fell in Thursday’s auction. The Central Bank of Kenya (CBK) auctioned KES 4.0Bn 91-day, KES 10.0Bn 182-day and KES 10.0Bn 364-day. However, it sold KES 4.22 billion worth of 91-day T-bills at a yield of 8.221 percent versus 8.284 percent last week, Ksh 14.77 billion worth of 182-day T-bills at a yield of 10.312 percent versus 10.329 percent last week and Ksh 15.92 billion worth of 364-day T-bills at a yield of 10.889 percent versus 10.895 percent last week. Analysts had projected a subdued turnover in the secondary market as local institutional investors map out 3Q17 strategies in the week. “Trading strategies are expected to factor in the uptick in net domestic government borrowing in FY17/18 and the concern of KES 458Bn in both T-Bills and T-Bonds maturities in the first half of the fiscal year,” according to Genghis Analyst investor brief. Last week, Performance on the discounted securities extended the previous week’s trend; decrease on the 91-day whilst an increase on the 182-day and 364-day papers. Overall subscription rate in the week declined to a six-month low of 73.11 percent from 103.79 percent with KES 17.07Bn in received bids.
