The Central Bank of Kenya (CBK) recently conducted its weekly treasury bills auction, revealing a notable surge in investor interest. The auction, which had initially offered KSh 24 billion worth of treasury bills, attracted bids amounting to KSh 38.8 billion—an impressive oversubscription rate of 161.8%. This article delves into the details of this auction, highlighting the compelling dynamics of Kenya’s fiscal instruments that continue to resonate with investors.
Oversubscription Soars to 161.8%
Investors exhibited keen interest in the treasury bills, with total bids amounting to KSh 38.8 billion—a striking oversubscription of 161.8%. CBK had initially offered KSh 24 billion worth of treasury bills but accepted bids worth KSh 38.7 billion. This substantial oversubscription underscores the attractiveness of Kenya’s fiscal offerings.
The 91-Day Treasury Bills: An Overwhelming Favourite
Among the treasury bills, the 91-day variant emerged as the clear favourite. It witnessed an astounding oversubscription rate of 870.8%. Investors enthusiastically submitted bids totaling KSh 34.8 billion, outstripping the KSh 4 billion on offer. CBK accepted bids worth KSh 34.7 billion for this particular instrument, reflecting its immense appeal.
Contrasting Fortunes for Other Bills
In contrast, the 3-month treasury bills faced a different scenario, receiving bids worth KSh 1.2 billion out of KSh 10 billion available, with an associated return rate of 14.4%. The one-year treasury bills attracted bids worth KSh 2.8 billion from the KSh 10 billion on offer, yielding a performance rate of 27.8%. CBK accepted bids worth KSh 2.7 billion for the one-year treasury bills.
CBK’s Offerings to Investors
CBK extended a range of competitive returns to investors. The 91-day, 182-day, and 364-day treasury bills were offered at return rates of 14.2%, 14.3%, and 14.8%, respectively. These rates compare favorably to the previous auction, reflecting a healthy demand for Kenya’s fiscal instruments.
A Glimpse into the Future
As the curtain falls on this successful auction, the next opportunity for investors to participate is set for September 14, 2023. Kenya’s treasury bills continue to captivate investors, underlining the nation’s stable and promising fiscal landscape.
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