CBK (Central Bank of Kenya) received oversubscription on the 91-day, 182-day, and one-year Treasury Bills at this week’s auction.
- The 91-day debt instruments pulled the most attraction among investors, with an oversubscription of 515.47%, with bills worth KSh20.6 billion received out of KSh 4 billion that CBK had offered at the auction, and KSh 20.5 billion accepted.
- The three-month treasury bill received bids worth KSh10.1 billion out of the KSh 10 billion on offer, with the CBK accepting all the bids.
- The one-year Treasury Bills received bids worth KSh 11.1 billion out of KSh 10 billion on offer, with CBK only accepting KSh9.7 billion.
CBK Offer to Investors at the Auction
In total, the monetary authority accepted KSh40.3 billion out of KSh24 billion on offer and KSh41.8 billion worth of bids received, made up of KSh27.6 billion in competitive bids and KSh12.7 billion in non-competitive bids.
Results of the three-year re-opened treasury bonds issued in March where the fiscal sought KSh40 billion was oversubscribed with total bids received amounting to KSh43.1 billion. The Bank accepted KSh34.3 billion, made up of KSh30.3 billion in competitive bids and KSh3.9 billion in non-competitive bids
The state fiscal agent had offered a coupon rate of 18.4%, making the bonds more attractive compared to what returns prevail in the treasury bills market. The Government intends to use KSh34.3 billion collected at this tap sale in March as new borrowing.
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