The Central Bank of Kenya(CBK) collected KSh 10.3 billion at the weekly treasury bills auction out of bids worth KSh 11.3 billion received, a performance rate of 47.1%. Bidders were offered T-bills worth KSh 24 billion at this auction.
The most attractive instrument remained the short-term 91-day treasury bills, which received bids worth KSh 6.7 billion out of KSh 4 billion offered, an oversubscription rate of 167.4%.
The least attractive debt instrument was the one-year T-bills which received bids worth KSh 256.3 million out of the KSh 10 billion on offer, an undersubscription of 2.6%. The CBK accepted the entire amount,
The 6-month treasury bills received bids worth KSh 4.3 billion out of KSh 10 billion, a performance rate of 43.5% with the state fiscal agent accepting the entire amount.
CBK OFFER TO INVESTORS AT THIS AUCTION
Bidders were offered a rate of return of 12.7%, 12.6%, and 13.1% for the 91-day, 182-day, and 364-day treasury bills respectively at this auction. These are compared to rates of 12.35%, 12.39%, and 12.7% for the debt instruments at the prior auction.
The next auction and bids closure for the KSh24 billion worth of treasury bills will be conducted on 10th August 2023 where CBK will be seeking for KSh 46.6 billion for loan redemptions and KSh 22.7 billion in fresh borrowings from the domestic market.
According to the latest Estimates of Revenues, Grants, and Loans for the financial year 2023/24, National Treasury targets to borrow KSh475 billion from the domestic money market in the current financial year, up from KSh425. 1 billion prescribed in the Supplementary Budget tabled in early 2023.
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