The Central Bank of Kenya (CBK) accepted bids worth KSh19 billion out of the KSh24 Billion worth of Treasury Bills that investors were offered at the Thursday Auction of 22nd October, 2020.
Investors put in bids worth KSh 19.5 Billion, representing a subscription rate of 81.35%. Out of the accepted submissions, those that were competitive were worth KSh 17.8 Billion with non-competitive bids comprising a mere KSh 1.2 Billion.
The 91-day Treasury Bills was the most attractive receiving bids worth KSh 4.1 Billion out of the KSh 4 Billion offered, an oversubscription of 103.1%. The average interest rate offered on this tenor was 6.589% from the previous 6.520%.
The 182-day Treasury Bill attracted bids worth KSh 7.2 Billion out of the KSh 10 Billion offered, a subscription rate of 72.28%.
The 364-day Treasury Bill, which attracted an average interest rate of 7.840% from the previous 7.800%, attracted bids worth KSh 8.2 Billion out of the KSh 10 Billion, 81.73%.
The next auction, where CBK is offering KSh 24 Billion, will be held on 29th October, 2020 with results to be announced on 30th October, 2020.
All bids for the three months, six months and one year Treasury Bills, must be submitted and received by CBK either manually or electronically by 2.00 p.m. on Thursday, 29th October, 2020.
According to David Luusa-Director, Financial Services at CBK, successful bidders making payments above Ksh1 Million must do this by electronic transfer, while those making payments below this amount may do so by Cash, Banker’s Cheque or RTGS.
These payments must reach the Central Bank not later than 2.00 p.m. on Monday, 2nd November, 2020.
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