The Central Bank of Kenya(CBK) accepted bids worth KSh 19.2 Billion out of KSh 19.3 Billion received from investors, representing an undersubscription of 80.28%.
Bidders were offered Government paper worth KSh 24 Billion at the Weekly Treasury Bills Auction conducted on Thursday 15th July 2021.
The most popular debt instrument was the 182-day Treasury Bills, where investors submitted bids worth KSh 11.32 Billion out of the KSh 10 Billion that the state’s fiscal agent had offered at the weekly auction.
This represented a performance rate of 113.25%. The CBK accepted KSh 11.29 Billion at this auction.
The least attractive was the 364-day Treasury Bills which received bids worth KSh 5 269 Million, a performance rate of 52.70%. The CBK accepted the one-year T-Bills worth KSh 5,219.89 Million at this auction.
The 91-day Treasury Bills attracted bids worth KSh 2,673.05 Million out of the KSh 4 Billion that was offered, representing a performance rate of 66.83%.
The state fiscal agent accepted 91-day T-Bills worth KSh 2,667.88 Million at this auction.
CBK Rates offered at the auction
Bidders at this auction were offered 6.520%, 6.984% and 7.506% for the 91-day, 182-day and 364-day Treasury Bills at this auction. This is compared to 6.614%, 7.101% and 7.576% for the respective instruments at the last auction.
The bids closure and date for the next weekly Treasury Bills auction is Thursday 22nd July 2021, where bidders will be offered 91-day, 182-day and 364-day T-Bills worth KSh 24 Billion.
The actual amount to be raised at this auction will be subject to the week’s National Treasury’s immediate liquidity needs.
Meanwhile, in the July 2021 issue, the CBK offered two re-opened 15-year and 25-year Treasury Bonds worth KSh 60 Billion and received bids worth KSh 116.9 Billion, an oversubscription of 194.87%.
The CBK accepted T-Bonds worth KSh 79.9 Billion, made up of KSh 71.3 Billion in competitive bids and KSh 8.6 Billion in non-competitive bids.
The coupon rate for the re-opened 15-year T-Bonds are 11% and 12.650%, while that for the 25-year T-Bond is 13.924%.
The most attractive instrument was the re-opened 15-year Treasury Bond, first sold in 2012, which received bids worth KSh 48,805.43 Million. The CBK accepted KSh 30,091.53 Million made up of KSh 28,327.83 Million and KSh 1,763.70 Million in competitive and non-c0mpetitive bids, respectively.
The CBK intends to use KSh 24,395.30 Million for loan redemptions and KSh 55,539.86 Million for net borrowings/ net loan repayment.
According to David Luusa-Director, Financial Markets at the CBK, specific features of the Bond(s), including the Tenor, Amounts, Coupon rates and issue terms for August 2021, will be provided in the prospectus before the issue date.
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