The Central Bank of Kenya(CBK) accepted bids worth KSh 17.9 Billion out of bids received amounting to KSh 20.97 Billion, a subscription rate of 78.39%.
The 91-day Treasury Bills was the most attractive, receiving bids worth KSh 4.5 Billion with the CBK accepting KSh 3.5 Billion, a performance rate of 113.32%
The 182 day Treasury Bills received bids worth KSh 11.2 Billion out of KSh 10 Billion offered with the CBK accepting bids worth KSh 9.3 Billion, a subscription rate of 112.15%.
The 364-day Treasury Bills was the least attractive, receiving bids worth KSh 5.2 Billion out of the KSh 10 Billion offered with the CBK accepting KSh 5.1 Billion.
Rate of return offered to investors
Interest rates offered to investors on the 91-day, 182-day and 364 day Treasury Bills was 7.265%, 7.977% and 9.164% at this auction compared to 7.280%, 7.984% and 9.091% respectively at the previous auction.
The Next Auction and Bids closure is on 23rd December 2021 with results to be announced on December 24th, 2021. The state’s fiscal agent will be seeking KSh 25 Billion made up of KSh 12.8 Billion for redemptions and KSh 11.2 Billion for new borrowing/ net repayments.
n the secondary market, the value of bonds traded decreased by 33.68% to KSh 9.79 Billion from KSh 14.78 Billion recorded last week.
On a year-to-date basis, the yield curve has readjusted upwards in the mid-range but held steady in the short and long end of the curve.
“We expect activity in the secondary bond market to be driven by attractive entry points on some specific papers and eased liquidity. The discovery of a new and strenuous variant is likely to bring renewed fears among investors thus pushing them towards safer havens such as fixed income assets,” said a weekly fixed income note from AIB.AXYS Africa.
The Kenya Shilling further lost ground against the US$ this past week depreciating 0.23% to trade at 113.01 from 112.89 at the close of the previous week. The Shilling has depreciated by 3.51% against the US$ on a year-to-date basis.
The CBK’s usable forex reserves currently stand at US$ 8,730 million (5.34 months of import cover), a 0.10% week-on-week decline from US$ 8,643 million (5.28 months of import cover) recorded the previous week.
Analysts expect the local currency to remain under pressure due to; the continued gains by the US$ against other global currencies, elevated global oil prices supported by reduced supply from OPEC members and reduced dollar inflow from key export earning sectors such as agriculture and tourism.