The Central Bank of Kenya (CBK) Treasury Bills Auction, accepted KSh 9.7 Billion worth of bids from the KSh 24 Billion that had been offered to investors by the Central Bank of Kenya(CBK), a performance of 41%.
This weekly auction was held on December 10th, 2020.
This is compared to the prior week that saw the CBK raise KSh 9.9 Billion out of the KSh 24 Billion, a performance of 45.5%.
The 91- day Treasury Bill received bids worth KSh 1.6 Billion, an undersubscription of 38.7%.
Compared to the 182 day Treasury Bills, which had KSh 2.9 Billion out of the KSh 10 Billion on offer, an undersubscription of 30.2%.
The 364 -day Treasury Bill was the most attractive, with the CBK raising KSh 5.2 Billion out of KSh 5.3 Billion worth of bids received, a performance of 52.8%.
CBK was offering Interest rates on the 91-day, 182 days, and 364 days Treasury Bills at 6.901%, 7.363%, and 8.246%.This is compared to 6,861%, 7.333%, and 8.204% for the 91, 182, and 364 days TBills at the previous auction.
The next auction and bids closure, where the CBK is offering KSh 24 Billion, is 17th December 2020.The CBK will channel the actual amount collected from this auction to meet Treasury’s weekly liquidity requirements.
The CBK will accept or reject bids with a minimum value of KSh 100,000 part or in full without giving any reasons. Only those investors with active CDS accounts can participate at the auction.
All bids must be submitted either manually or electronically by 2.00 p.m. on Thursday, 17th December 2020.
Investors making payments that are above KSh1 Million must do this electronically.
“In consideration of the Christmas holidays, the auction for the Treasury Bills for 91-day, 182-day and 364-day value dated 28th December 2020 will close at 10.00 am on Thursday, 24th December 2020,” said David Luusa-CBK Director, Financial Markets.
All Non-competitive bids are up to a maximum of KSh20 Million. This does not apply to State Corporations, public universities, and semi-autonomous government agencies (SAGAs).
In the Treasury Bonds market, the CBK offered two 15 year bonds worth KSh 40 Billion and received bids worth KSh 24.3 Billion. The CBK accepted bids worth KSh 18.3 Billion, an under subscription of 60.9%. The coupon rate for the re-opened 15 year bonds were 11% and 12.7% respectively.
” The next T-Bonds issue, including tenor, amounts, coupon rate and issue terms will be provided before the issue date,” said David Luusa, Director-Financial Services at the CBK.
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