NAIROBI (Xinhua) --
Kenya’s 364-day Treasury bill registered an
oversubscription for the first time in six weeks
following the Central Bank of Kenya’s move to suspend
the sale of the 182-day paper.
the bank choose not to issue the 182-day Treasury bill
which had over-performed for weeks as it sought to avoid
heavy maturities at the same time.
which it has repeated this week suspending the sale of
the paper in the auction dated March 20, thus, pushed
investors to bid for the one-year paper.
Bank offered 364 days Treasury bills for a total of 97
million dollars. The total number of bids received
amounted to 160 million dollars representing a 166
percent subscription,” said CBK in auction data
that bids accepted amounted to 160 million dollars while
the weighted average rate of accepted bids, which will
be applied for non-competitive bids was 10.9 percent
from 10.8 percent.
noted that for about five weeks, Treasury was accepting
large amounts from the six-month bill, risking the
concentration of debt on one paper.
there was need to correct the debt market by withdrawing
the sale of the paper and floating higher amounts for
the 91-day and 182-day securities.
six-month offer was attractive to investors for weeks
because it offered higher return on a risk-adjusted
basis compared to the 364-day as their rates were nearly
at par at 10.5 and 10.9 percent respectively.