During the week, Treasury bills were undersubscribed for a third week with the under-subscription falling further to 32% from 60% recorded the previous week.
The Central Bank of Kenya (CBK) accepted bids worth KSh 6.1 billion out of the KSh 7.7 billion received, reflecting a 79% acceptance rate.Demand remained pegged on the 91-day paper, which attracted bids worth KSh 4.4 billion from the KSh 4 billion on offer, an oversubscription of 109.0%.The CBK however accepted KSh 2.7 billion on this tenor. Both the 182-day and 364-day papers witnessed shrunk subscription rates to 14.9% and 18.3% respectively.
The accepted average yields on the three papers saw an uptick from the previous week, increasing to 15.97%, 16.76%, and 16.79% for the 91-day, 182- day and 364-day papers respectively.
Treasury bills soared after a series of rate hikes from CBK to cool inflationary pressures and stabilize the shilling. The government, however, is keen on pushing rates downwards by rejecting expensive bids despite the current debt servicing.
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