Treasury bill subscription in last week’s sale rose fourfold compared to the previous week as the market rumbled back to life after the festive season.
Investors bid a total of Sh18.74 billion in the weekly auction, compared to Sh4.08 billion in the week ending December 27, which caught many investors on their Christmas break. In spite of the increased bids, however, the Treasury still underperformed on its target of Sh24 billion.
Central Bank of Kenya, the selling agent, accepted a total of Sh12.3 billion, which matched with total redemptions of Sh20.47 billion meant that the Treasury made net repayments of Sh8.1 billion in the short term securities last week.
Investors opted heavily for the one-year T-bill, making bids worth Sh15.9 billion on the tenor last week. On the 182-day and 91-day papers, they bid Sh1.06 billion and Sh2.71 billion respectively.
They have been opting for the longer paper in recent auctions as they seek higher yields.
In the auction last week, the rate on the one-year T-bill went up from 9.815 percent to 9.828 percent.