Central Bank of Kenya(CBK) received bids worth KSh 30.12 billion at the weekly treasury bills auction, out of KSh 24 Billion, an oversubscription of 125.49% with the CBK accepting KSh 30.09 billon.This is the first oversubscription in the weekly T-bills auction over the past four weeks.
The most attractive government paper was the 91-day treasury bills which received bids worth KSh 26.7 billion out of the KSh 4 billion offered, an oversubscription of 667.69% with CBK accepting KSh 26.6 billion.
The least attractive debt instrument was the 3-month T-bills which received bids worth KSh 1.1 billion out of the KSh 10 billion offered, with CBK accepting the entire amount.
The one-year treasury bills received bids worth KSh 2.3 billion out of the KSh 10 billion offered, a performance rate of 22.7% with the state fiscal agent accepting this entire amount.
CBK Offer to Bidders At the Auction
Investors were offered a return of 12.014%, 12.199% and 12.250% for the 91-day, 182-day and 364-day treasury bills at this auction compared to 11.904%, 11.947% and 12.157% at the previous auction.
The next treasury bills auction and bids closure will be on 13th July 2023 while results will be announced on 14th July 2023.
In the primary market, the CBK is seeking an additional KSh 40.0 billion for budgetary support by offering a new 5-year treasury bond and reopening a three-year bonds whose maturity is 3.2-years. The coupon rate for the 5 yr. T-Bond will be market-determined; however, the coupon rate for the 10-year T Bond is set at 15.0%.
Investors expect these bonds, whose bidding closes on 11th July 2023, to be oversubscribed given the high returns offered, which will act as a bait.
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