The Central Bank of Kenya (CBK) received bids worth KSh 37.2 billion, a performance rate of 106.15% from the 3-year and 5-year Treasury Bonds tap sale with successful bidders expected to make their payments on 15th January 2024.
- CBK rejected most of these bids and accepted only KSh 25 billion out of the KSh 35 billion that was offered by investors at the tap sale.
- The three-year T-Bond received bids worth KSh 29.1 billion with the CBK accepting KSh 22.1 billion made up of 19.6 billion in competitive bids and KSh 2.5 billion in non-competitive bids.
- The 5-year Treasury Bond which matures on 10th July 2028 received bids totaling KSh 8.1 billion with the CBK accepting KSh 2.9 billion made up of 2.6 billion in competitive bids and KSh 694.8 million in non-competitive bids.
Proceeds from this January Treasury Bonds tap sale will be KSh 35.9 billion for redemptions and KSh 10.8 billion in new borrowings/net repayments.
At the Weekly Treasury Bills Auction, the CBK collected KSh 45.9 billion out of KSh 24 billion on offer. The auction received bids worth KSh 57.9 billion, an oversubscription of 241.5% as the Government increases its borrowing requirements from the domestic money market.
Investors continue to show their preference for the less risky short-term paper, which received bids worth KSh 44.6 billion out of KSh 4 billion on offer, an oversubscription of 1,114.40%.
- The CBK accepted KSh 34.9 billion.
- The next weekly Treasury Bills auction and bids closure is set for 18th January 2024.
- The 91-day, six-month, and one-year Treasury Bills are all attracting a rate of return that is now firmly above 16%, compared to 15% towards the tail end of 2023, making these debt instruments much more attractive to commercial banks and other large institutional investors compared to other investment options.
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