CBK accepts KSh 7 billion at weekly treasury bills auction

The Central Bank of Kenya(CBK) received bids worth KSh 7,035.74 Million at the Weekly Treasury Bills Auction this Thursday, out of the KSh 24 Billion that was on offer.

The performance at the auction represented an undersubscription of 29.32%, one of the lowest in recent months.

The state fiscal agent accepted bids worth KSh 7,005.76 Million made up of KSh 4.963 Million in competitive bids and KSh 2,042.15 Million in non-competitive bids.

The most attractive instrument was the 91-day Treasury Bills, where investors submitted bids worth KSh 2,812.42 Million out of the KSh 4 Billion on offer, representing a performance rate of 70.31%. The CBK accepted KSh 2,782.71 Million.

The 182-day T-Bills attracted bids worth KSh 3,134.61 Million against CBK’s offer of KSh 10 Billion, an undersubscription of 31.35%. CBK accepted all the bids submitted.

The 364-day T-Bills was the least attractive as investors showed their preference for short term instruments, with CBK receiving bids worth KSh 1,088.70 Million, an undersubscription of 10.89%.

Amount accepted at this auction was KSh 1,088.43 Million for this one-year instrument.

The rate of return for the 91-day, 182-day and 364-day T Bills was 6.527%, 7.117% and 7.418%, respectively, at this auction. This is compared to 6.513%, 7.046% and 7.418% for the three months, six months and one-year T Bills at the previous auction.

The next auction and bids closure is 19th August 2021, with results announced the following day. The state fiscal agent will seek KSh 22. 4 Billion for loan redemptions and KSh 1.6 Billion for new borrowing/ net repayments.

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