The Treasury Bills auction received bids totalling KSh 15 billion against an advertised amount of KSh 24 Billion. This represents a performance rate of 62.6%. Treasury Bills have become a preferred choice for Central Bank of Kenya in raising cash from the domestic economy.
The 5-year Treasury Bond offered at the auction of May 6th, 2020 received bids totalling KSh 50 billion representing a performance of 69.1%. The interest rate for the bond increased slightly compared to the previous issue of a similar Treasury Bond.
Turnover of bonds traded in the previous secondary market increased by 19.2% during the week. In the international market, yields on Kenya’s Eurobonds declined by an average of 60.5 basis points.
The Kenya Shilling strengthened against the greenback to exchange at KSh 106.08 on May 7th compared to KSh 107.29 on April, 30th 2020.
The CBK forex reserves remained adequate at $ 7,809 Million(4.7 months of import cover as at May 7. This meets the CBK’s statutory requirement to maintain at least 4 months of import cover.
The CBK Weekly bulletin mentions that international oil prices recovered with global financial markets remaining optimistic during the week following the gradual easing of lockdown restrictions in parts of Europe.
ALSO READ:CBK Floats KSh 50 Billion T-Bonds to Support Spending
