The Central Bank of Kenya(CBK) accepted bids worth KSh 23.3 Billion from this week’s Treasury Bills Auction held on Thursday, 18th March 2021.
The Government’s fiscal agent received bids amounting to KSh 27.6 Billion from investors against its offer of TBills worth KSh 24 Billion at this auction.
CBK offer at the Auction
The most attractive instrument, during this open market operations, was the one-year Treasury Bills where bids worth KSh 15.1 Billion were out of KSh 10 Billion on offer. The CBK accepted KSh 11.7 Billion, a performance rate of 150.77%.
The six-month Treasury Bill was the least attractive, with bids worth KSh 6.1 Billion accepted out of the KSh 10 Billion offered, an undersubscription of 70.99%. The 182-days Treasury Bills received bids worth KSh 7.1 Billion.
The 91-days Treasury Bill received bids worth KSh 5.4 Billion out of the KSh 4 Billion on offer, with the CBK accepting the entire KSh 5.4 Billion, a performance rate of 135.56%.
At this auction, competitive bids amounted to KSh 17.6 Billion while non-competitive bids amounted to KSh 5.7 Billion.
Successful investors are required to make their payments to the CBK by 2 p.m; on 22nd March 2021.
The 91-day Treasury Bills had an interest rate of 7.071% at the auction compared to 7.024% at the last auction. The one year Treasury Bills was the most lucrative, with a rate of return of 9.213% at this auction compared to 9.144% at the last auction.
The comparative average interest rate on the 182-day Treasury Bills accepted bids was 7.884% at this auction compared to 7.832% at the previous auction.
The next Treasury Bills auction and bids closure is March 25th, 2021, where the Government’s fiscal agent will be seeking KSh 24 Billion for redemptions, new borrowings and repayments.