CBK Collects KSh 11.7B at Weekly T-Bills Auction

The Central Bank of Kenya(CBK) accepted bids worth KSh 11.6 Billion at last week’s Treasury Bills Auction, an undersubscription of 48.56%.

This is because only a paltry KSh 11.7 Billion out of KSh 24 Billion worth of bids, was received at this auction.

Investors showed their preference in the 91-day treasury bills, where the state fiscal agent received bids worth KSh 4,800.04 Million, an oversubscription of 120%, with bids worth KSh 4,799.21 Million accepted.

The one year Treasury Bills received bids worth KSh 4,252.21 Million, a performance rate of 42.52%, with the CBK accepting KSh 4,161.11 Million.

The least attractive debt instrument was the 182-day treasury bills, which received bids worth KSh 2,601.49 Million, a performance rate of 26%, with amounts of KSh 2,601.40 Million worth of bids being accepted at this auction.

Successful bidders have been offered rates of 7.424%, 8.315% and 9.745% for the three months, 182-day and 364-day treasury bills, compared to 7.377%, 8.219% and 9.743% for the respective debt instruments at the previous auction.

Bids closure and the next auction is on 21st April 2022, with results to be announced on 22nd April 2022.

T-Bills are a secure, short-term investment, offering a return after a shorter period of between 3 months and one year.

Returns from the Government debt instrument offer investment options through the weekly auctions.

T-Bills are offered at a discount, implying that an investor can know what to expect. Bidders pay less than this amount when purchasing the debt instrument.

ALSO READ: CBK Collects KSh 14.5 B at Weekly Auction