The Central Bank of Kenya (CBK) received bids worth KSh 7.035 Billion at the Weekly Treasury Bills Auction this Thursday, out of the KSh 24 Billion that was on offer.
The performance at the auction represented an undersubscription of 29.32%, one of the lowest in recent months.
The state fiscal agent accepted bids worth KSh 7,005.76 Million made up of KSh 4.963 Million in competitive bids and KSh 2,042.15 Million in non-competitive bids.
The most attractive instrument was the 91-day Treasury Bills, where investors submitted bids worth KSh 2,812.42 Million out of the KSh 4 Billion on offer, representing a performance rate of 70.31%. The CBK accepted KSh 2,782.71 Million.
The 182-day T-Bills attracted bids worth KSh 3,134.61 Million against CBK’s offer of KSh 10 Billion, an undersubscription of 31.35%. CBK accepted all the bids submitted.
The 364-day T-Bills was the least attractive as investors showed their preference for short term instruments, with CBK receiving bids worth KSh 1,088.70 Million, an undersubscription of 10.89%.
Amount accepted at this auction was KSh 1,088.43 Million for this one-year instrument.
CBK offer to investors
The rate of return for the 91-day, 182-day and 364-day T Bills was 6.527%, 7.117% and 7.418%, respectively, at this auction. This is compared to 6.513%, 7.046% and 7.418% for the three months, six months and one-year T Bills at the previous auction.
The next auction and bids closure is 19th August 2021, with results announced the following day. The state fiscal agent will seek KSh 22. 4 Billion for loan redemptions and KSh 1.6 Billion for new borrowing/ net repayments.
The Central Bank of Kenya, meanwhile, collected KSh 80.3 Billion at this month’s Treasury Bonds Tap-Sale held on Wednesday 11th August 2021
It received bids worth KSh 104.6 Billion out of the KSh 60 Billion worth of two re-opened 10 and 20 year Treasury Bonds as well as new 20-year Treasury Bonds that were on offer this August.
This represented a performance rate of 174.40%, with KSh 80,291.29 Million accepted to be used by the National Treasury for budgetary support.
Out of this amount, KSh 52,065.36 Million was in the form of competitive bids and KSh 28.2 Billion in non-competitive bids.
The coupon rate for the re-opened 10-year, 20-year and the new 20-year fixed coupon T-Bonds was 11.517%, 13.200% and 13.444%, respectively, much higher than returns in the short-term Treasury Bills market.
The bonds will be listed on the Nairobi Securities Exchange. Secondary trading in multiples KSh 50,000.00 will commence on Tuesday, 17th August 2021.
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