Treasury bills were oversubscribed in April at the rate of
123.12 per cent, boosted by the uptake of the six-month and one-year
tenors.
The Treasury accepted a total of Sh98.63 billion from investors who had offered Sh118.14 billion.
Central
Bank of Kenya (CBK), the government’s fiscal agent, had advertised a
total of Sh96 billion for the three tenors (91-, 182-, and 364-day).
“The
yields on the 91-day and 364-day papers remained flat at eight per cent
and 11.1 per cent respectively, while the yield on the 182-day paper
declined by 10 basis points (bps) to 10.3 per cent from 10.4 per cent
the previous month,” said analysts at Cytonn Investments in a note to
investors.
In April, the 182- and 364-day papers saw an oversubscription
with the rates coming in at an average of 122.2 per cent and 141.0 per
cent respectively while that of 91 day was at 80.70 per cent.
The 91-day paper continued to sell below its five-year average of 9.2 per cent.
The
lower yield on the three-month paper is mainly attributable to a
low-interest rate environment being experienced since the passing of the
law capping interest rates.
Analysts expect this to
continue in the short-term, given the discipline of the CBK in
stabilising interest rates in the auction market by rejecting aggressive
bids priced above market for both Treasury bills and bonds.
The
government is under no pressure to borrow from the local market being
currently ahead of its domestic borrowing target and in the foreign
markets where it has met approximately 86.1 per cent of its prorated
target.
The 91-day paper attracted bids worth Sh12.89
billion against a total amount offer of Sh16 billion. The Treasury
accepted Sh8.83 billion from investors.
In the 182-day
paper, investors had offered Sh48.86 billion against an offer of Sh40
billion. The Treasury accepted Sh40.32 billion, while in the 364-day
auctions, the Treasury accepted a total of Sh49.48 billion from Sh56.39
billion against an offer of Sh40 billion.
No comments :
Post a Comment