The Central Bank of Kenya (CBK) has released results for the latest Treasury Bills auction, revealing an oversubscription in the 364-day tenor while shorter-term offerings struggled to attract investors.
The auction, which sought to raise Ksh 24 billion across 91-day, 182-day, and 364-day Treasury Bills, saw bids totaling Ksh 30.96 billion, representing a 128.99% overall performance rate.
The 364-day paper received the highest demand, attracting Ksh 20.82 billion against an offer of Ksh 10 billion— a 208.24% subscription rate. The CBK accepted Ksh 16.29 billion from these bids at a weighted average interest rate of 10.46%.
The 182-day bill recorded an 84.03% performance rate, with Ksh 8.40 billion in bids received, of which Ksh 6.48 billion was accepted at an average rate of 9.08%. Meanwhile, the 91-day bill saw a low turnout, receiving only Ksh 1.72 billion against the Ksh 4 billion target, representing a 43.23% subscription rate. CBK accepted Ksh 1.67 billion at an average interest rate of 8.84%.
The funds raised will be used to roll over maturing obligations totaling Ksh 23.61 billion, with the remainder allocated to new borrowing. Investors interested in the next Treasury Bills auction must submit bids by March 27, 2025, with results to be announced on the same day.
Financial analysts attribute the strong appetite for longer-term T-Bills to the attractive interest rates amid economic uncertainties.
