The Central Bank of Kenya received bids worth KSh 29.97 Billion from the Weekly Treasury Bills Auction from the KSh 24 Billion offered, an oversubscription of 124.91%.
Bids worth KSh 28.8 Billion was accepted at the auction, the first time the T-Bills auction has been oversubscribed in weeks this year.
Bids accepted by CBK
Competitive bids accepted by CBK amounted to KSh 25.9 Billion, while non-competitive bids amounted to KSh 2.9 Billion.
The Government’s fiscal agent accepted bids worth KSh 4.7 Billion out of the KSh 4 Billion 91 day Treasury Bills that was offered, an oversubscription of 116.86%. Investors had put in bids worth KSh 4.674 Billion for this government paper.
The 182 days Treasury Bill received KSh 11.4 Billion out of the KSh 10 Billion on offer, with a total of KSh 10.7 Billion accepted, a 114.03% oversubscription.
The 364-days Treasury Bill continues to be the most attractive, with bids worth KSh 13.9 Billion received at this auction out of the KSh 10 Billion on offer. Bids worth KSh 13.5 Billion was accepted, representing a performance rate of 139.01%.
Returns to Investors
Interest rates offered for the 91 days Treasury Bills was 6.911% compared to 6.905% at the auction prior.
Rates offered for the 182 days, and 364 days Treasury Bills was 7.644% and 8.824%. This is compared to 7.644% and 8.824% at the last auction.
Next Auction and bids closure
The next Treasury Bills auction will be on 25th February 2021, where the state’s fiscal agent will seek KSh 24 Billion. Successful bidders are required to make their payments to the CBK not later than March 1st, 2021.
According to the CBK notice, g Non-competitive bids are subject to a maximum of KSh 20 Million per investor account per tenor.
This requirement excludes State Corporations, public universities and semi-autonomous government agencies (SAGAs).