The treasury building in Nairobi. [ photo / Hivisasa. ]
The treasury bills overall subscription rate during last weeks’ primary auction weighed down as investors scrambled to purchase long tenure bonds that saw the 364-day paper recording a 105 per cent over subscription.
The data from Central Bank of Kenya ( CBK) shows that bids totaling to Sh20.36 billion was received in last weeks auction against a target of Sh24 billion as it only accepted bids worth Sh 18.49 billion of the total bids representing an 84.85 per cent overall subscription.
The long tenure bonds, 364-day paper, attracted bids worth Sh 10.54 billion against a target of Sh10 billion with the CBK accepting Sh 9.6 billion of the bids.
The 182-day paper attracted bids worth Sh 8.9 billion against a target of Sh 10 billion with the Treasury accepting Sh 8.22 billion of the bids.
The short tenure bonds, 91-day paper, recorded a poor sales as it only attracted bids worth Sh 907.63 million against a target of Sh 4 billion with treasury accepting Sh 662.82 million of the bids.
CBK also noted that the previous auction saw the the 91-day paper yield 8.005 per cent, 182-day yield 10.583 per cent and the 364-day paper yield 11.128 per cent as even the treasury recorded a 76.39 per cent positive uptake.