The 91-day Treasury bill experienced a sluggish uptake at the
latest weekly auction, as investors focus shifted to the one-year tenor.
This was despite the overall performance rate of the weekly auctions hitting 218.89 per cent in last week’s sale.
Central Bank of Kenya (CBK) accepted Sh32.03 billion from the Sh52.53 billion worth of bids received.
Analysts
at investment bank Genghis Capital said investor apathy towards the
91-day tenor led to the sub-par uptake, even as they remained upbeat on
the one year paper.
“We still expect continued uptake of the 364-day tenor paper in
the market, which has been starved of a shorter-term Treasury bond in
the recent primary bond sales,” said the analysts in an email response.
Yields
on the 91-day, 182- and 364-day papers declined by two basis points
(bps), 20bps and four bps to 7.7 per cent, 9.3 per cent and 10.4 per
cent respectively.
The 364-day paper attracted bids
worth Sh37.72 billion against an offer of Sh10 billion, a 377.29 per
cent performance rate. The Treasury accepted Sh19.58 billion.
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