In Summary
  • CBK received Sh47.58 billion against the Sh24 billion sought, translating to a performance rate of 198.26 percent. Of the bids received, CBK accepted just Sh28.92 billion.
  • This was the highest subscription in four weekly auctions, according to Genghis Capital records.

Treasury bills subscription continued to exceed government’s demand last week with the Central Bank of Kenya (CBK) receiving Sh47.58 billion against the Sh24 billion sought, translating to a performance rate of 198.26 percent. Of the bids received, CBK accepted just Sh28.92 billion.

This was the highest subscription in four weekly auctions, according to Genghis Capital records.

“The 364-day tenor remains the most appealing tenor on a risk-adjusted basis and has also been bolstered by excess market liquidity,” said Genghis in weekly wrap analysis.

The Treasury was seeking Sh4 billion from 91-day Treasury bill and Sh10 billion each from 182- and 364-day papers. Only the 91-day paper was under-subscribed, receiving Sh3.34 billion while the demand for 182- and 364-day papers hit 149.27 percent and 293.19 percent.

While Treasury absorbed all the bids from 91-day paper, it accepted Sh8.93 billion from 182-day paper and Sh16.64 billion from the 364-day T-bill to meet its liquidity needs.

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