Central Bank Raises Ksh 16.21Bn From Treasury Bills Auction

The Central Bank of Kenya has raised Ksh 16.21Bn  through Treasury Bills auction on Thursday.

However, the T-bills were undersubscribed at 85.3 percent, compared to 80.8 percent last week.

Yields on the 91 and 364-day papers remained unchanged at 8.1 percent and 11.2 percent, respectively, while the yield on the 182-day paper rose to 10.7 percent from 10.6 percent the previous week.

On the 91,364-day papers, and 182-day papers CBK raised Ksh 3.26 billion, 9.71 billion and 3.24 billion respectively against the targeted Ksh 24.00 billion.

Last week, the CBK absorbed Ksh 15.12 billion with yields marginally higher at 8.080 percent , 10.649 percent and 11.151 percent for the 91,182 and 364 day papers respectively.

Meanwhile, the Tap sale on the recently auctioned Treasury bonds (FXD1/2008/15 and FXD1/2017/10) was undersubscribed with the Central bank receiving and accepting Ksh 7.82Bn against the Ksh 20.00Bn on offer.

Read: ‘Poor Strategy’ For Treasury to Reopen Eighth Bond Tap Sale – Analysts 

The amount received on the shorter tenure was less than half of the bids received on the longer tenure perhaps indicative that investors are more focused on a return pursuit as opposed to entirely focusing on tenure given the interest rate cap at 14.00 percent.