Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research and reporting expertise, providing insights into Kenyan and global trends.
The Central Bank of Kenya (CBK) raised KSh 13.46 billion through the issuance of 91-day, 182-day, and 364-day Treasury bills.
Source: UGC
Notably, the short-term instruments underperformed with the accepted bids falling short of its target of KSh 24 billion during the Treasury bills auction on January 30.
The 91-day Treasury bill attracted bids worth KSh 2.46 billion against an offered amount of KSh 4 billion, translating to a performance rate of 61.63%. The 182-day and 364-day bills had performance rates of 28.63% and 81.34%, respectively.
The total bids received amounted to KSh 13.46 billion, with competitive bids contributing KSh 3.64 billion, while non-competitive bids accounted for KSh 9.45 billion.
"The Treasury bill auction of January 30 received bids totalling KSh 13.5 billion against an advertised amount of KSh 24.0 billion, representing a performance of 56.1%," CBK said in the weekly bulletin.
The weighted average interest rates for the accepted bids rose marginally, reflecting investors’ demand for higher returns in the Treasury bills auction.
The 91-day, 182-day, and 364-day Treasury bills yielded 9.5219%, 10.0275%, and 11.3132%, respectively. These rates were slightly higher than those from the previous auction, demonstrating upward pressure on interest rates.
The CBK announced its next Treasury bills auction, targeting KSh 24 billion in short-term loans. This includes KSh 4 billion for the 91-day bill, KSh 10 billion for the 182-day bill, and KSh 10 billion for the 364-day bill.
"The actual amount to be realised from the auction will be subject to National Treasury's immediate liquidity requirements for the week. Where several successful bidders quote a common rate, the Central Bank of Kenya (CBK) reserves the right to allot bids on a pro-rata basis. Individual bids must be of a minimum face value of Kshs. 50,000.00 for Non-Competitive and 2,000,000.00 for Competitive. Only investors with active CSD accounts are eligible," CBK said.
The auction is scheduled for February 6, 2025, with results set to be published on the same day and as reported earlier, investors are required to submit bids electronically via the CBK Dhow CSD platform.
Source: TUKO.co.ke
