The Central Bank of Kenya (CBK) accepted KSh 26,669.30 Million from the weekly treasury Bills auction held yesterday, Thursday 25th February 2021.
This is the second consecutive week that the auction is oversubscribed at the CBK received bids worth KSh 31.7 Billion, representing a performance rate of 131.97%.
How investors bid at the CBK auction
The most attractive instrument was the 364 days Treasury Bills, where the state’s fiscal agent accepted bids worth KSh 14.5 Billion out of the KSh 10 Billion on offer, a performance rate of 151.64%.
The 182 days Treasury Bills received bids worth KSj 10.2 Billion out of the KSh 10 Billion on offer, a performance rate of 102.28%.
The 91 days Treasury Bill received bids worth KSh 6.2 Billion out of the KSh 4 Billion on offer, with the Government’s fiscal agent accepting KSh 4.8 Billion, a performance rate of 157.04%.
Returns to investors in Government paper
Interest rates on the 91 days, 182 days and 364 days Treasury Bills were 6.931%, 7.722%, and 9.014%. This is compared to 6.911%, 7.684% and 8.931%, respectively.
The next auction and bids closure is 4th March 2021, where the Government will be offering Treasury Bills worth KSh 24 Billion.
Bids must be submitted and received by CBK either manually or electronically or CBK Internet Banking for commercial banks by 2.00 p.m. on Thursday, 4th March 2021 for 91-day, 182-day and 364-day Treasury Bills.
Payments must reach the Central Bank not later than 2.00 p.m on Monday, 8th March 2021.
Non-competitive bids are subject to a maximum of Kshs. 20 Million per investor account per tenor and are issued at the weighted average of accepted bids.
However, this does not apply to State Corporations, public universities, and semi-autonomous government agencies (SAGAs).