The Central Bank of Kenya (CBK) has tendered a new batch of Treasury Bills in an auction that is seeking KSh 24 billion.
“The actual amount to be realized from the auction will be subject to National Treasury’s immediate liquidity requirements for the week,” said Mr William Nyagaka, Director, Financial Markets at CBK in a notice
The auction date for the three months, six months and one-year TBills is 5th December 2019 with results to be announced on 6th December, 2019.
The deadline for receiving bids will be at 2.00 pm on Thursday, 5th December 2019.
This follows a previous auction where the CBK suffered low subscription rates with investors giving the Government debt market a wide berth.
In this Treasury Bills auction dated 2nd December 2019, the CBK had offered KSh 24 billion and received bids worth KSh 8.4 billion, a subscription rate of only 34.81 percent. Total amount accepted was KSh 4.9 billion.
For non-competitive bids, the CBK was seeking for KSh 21.6 billion in the tap sale of a 10 year Treasury bond.
It received bids of KSh 8.1 billion and was offering a coupon rate of 12.28 percent for the instrument.
A Treasury Bill auction system involves the open invitation of bids from qualifying institutions normally referred to as primary dealers and the invitation is accompanied by a stipulation of the bill’s features.