Kenya Treasury bills oversubscribed as liquidity environment loosens

Interest rates on short-term Treasury bills, 182-day, 364-day T-bills and 91-day were over-subscribed for the first time in in four auctions on Thursday.

The T-bills were oversubscribed at 144.8 percent compared to  77.5 percent  last week due to liquidity injection into the market.

“This week’s subscription on the Treasury bills shows the liquidity environment may have loosened,” noted Genghis Capital Analyst.

Yields for the 91, 182 and 364-day papers came in at 8.153 percent, 10.316 percent and 10.906 percent compared to 8.2 percent, 10.3 percent  and 10.9 percent the previous week, respectively.

The Central Bank of Kenya sold Ksh 3.78 Bn worth of 91- Day T-bills  against a target of of Ksh 4 Billion, Ksh 18.40 Bn worth of 182 Day T-bills against a target of Ksh 10 Bn and Ksh 11.62 Bn worth of 364 -Day t-Bills against a target of Ksh 10Bn.