Treasury Bills offered at the latest weekly Government Securities Auction recorded a marginal decline in interest rates offered to bidders by the Central Bank of Kenya (CBK), the first time this trend has been seen for the past 24 months.
- •CBK received bids worth KSh 28.5 billion at the Weekly T-Bills auction against KSh 24 billion offered at the Government Securities Market; a performance of 118.7% percent.
- •CBK weekly bulletin shows that interest rates on the 364-day Treasury bill remained stable while that of the 91-day and 182-day treasury bills decreased marginally.
- •Investors continued to show their preference for the short-term 91-day treasury bills which received bids worth KSh 7.9 billion out of KSh 4 billion on offer followed by the 364-day treasury bill which received bids worth KSh 13.4 billion out of KSh 10 billion on offer.
CBK Results for April T-Bonds Tap Sale
Results of the 5-year and 10-year Treasury Bonds dated 8th April 2024 show that the state fiscal agent received bids worth KSh 47.8 billion out of the KSh 25 billion advertised amount, with the state fiscal agent accepting KSh 45.8 billion.
The most attractive T-Bond was that with a 5-year tenor which received bids worth KSh 35.6 billion at a coupon rate of 16.8440 while the 10-year Treasury Bond received bids worth KSh 12.2 billion and the CBK accepted KSh 11.9 billion and offering successful bidders a coupon rate of 16
The bonds were oversubscribed with the overall subscription rate pegged at 191.2%, with CBK receiving bids worth KSh 47.8 bn against the offered KSh 25.0 bn. The CBK accepted bids worth KSh 45.8 bn, translating to an acceptance rate of 95.9%.
The weighted average yield of accepted bids for the FXD1/2023/005 and the FXD1/2024/010 remained unchanged at 18.4% and 16.5% respectively. With the Inflation rate at 5.7% as of March 2024, the real return of the FXD1/2023/005 and the FXD1/2024/010 is 12.7% and 10.8% respectively.
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