Investors show less interest in short-term T-bill

The Central Bank of Kenya (CBK) building in Nairobi. FILE PHOTO | NMG 

By JAMES NGUNJIRI

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Investors last week preferred the 182- and 364-day Treasury bills over the 91-day paper even as market analysts noted improved liquidity.

Central Bank of Kenya (CBK) figures released on Friday indicated the 91-day paper received less bids at Sh2.7 billion against a target of Sh4 billion. The three-month government paper subscription rate came in at 67.5 per cent.

The 182- and 364-days tenor papers subscription came in at 145 per cent and 153 per cent.

The 182-day T-bills attracted bids worth Sh14.5 billion against a target of Sh10 billion, while that of 364-days tenor attracted bids worth Sh15.3 billion against a target of Sh10 billion.

“We view the improved liquidity situation (due to maturities and government disbursements trickling in the system) has swayed investors, mainly banks, to lengthen their duration hence preference of 182-day and 364-day tenors over 91-day,” said Genghis Capital Ltd.

READ: Forex reserves rise signals drop in CBK market activity

CBK accepted Sh29.7 billion from the Sh32.6 billion worth of bids against a target of Sh24 billion during the auction.

This represented a 135.8 per cent overall subscription rate.

This is the third consecutive week the 364-days tenor is showing positive trends after it was uplifted by investor preference due to uncertainty over short-term rate direction.