Kenya’s Treasury bills were oversubscribed for the third consecutive week, signalling sustained investor appetite for short-term government securities. The overall subscription rate stood at 105.9%, a slight dip from 114.7% the previous week.
Investor preference continued to tilt heavily toward the 91-day paper, which drew bids worth KSh13.0 billion against an offer of KSh4.0 billion, translating to a 325.0% subscription rate. This was a significant jump from 91.0% in the preceding week, underscoring demand for short-term tenors amid shifting liquidity dynamics.
The 182-day paper also saw improved performance, with its subscription rising to 70.3% from 25.5% a week earlier. However, demand for the 364-day paper eased considerably, dropping to 53.7% from 213.5% previously.
Out of KSh25.4 billion worth of bids received, the government accepted KSh25.3 billion, marking a 99.9% acceptance rate.
Yields on all tenors edged lower, maintaining a downward trajectory for the second straight week. The most notable decline was recorded on the 182-day paper, which fell by 4.4 basis points to 7.87% from 7.91% last week. The 91-day and 364-day papers also saw marginal decreases of 3.0 bps and 1.8 bps to 7.83% and 9.35%, respectively.
Market analysts attribute the continued investor bias toward shorter-term securities to expectations of near-term rate adjustments and cautious positioning ahead of the November bond buyback auction announced by the Central Bank of Kenya (CBK) earlier this week.
Quick Take:
- 📈 Overall subscription: 105.9% (down from 114.7%)
- 💰 91-day paper: 325.0% subscribed (KSh13.0B bids vs KSh4.0B offer)
- 💵 182-day paper: 70.3% (up from 25.5%)
- 📉 364-day paper: 53.7% (down from 213.5%)
- ✅ Acceptance rate: 99.9%
- 🔻 Yields: 91-day (7.83%), 182-day (7.87%), 364-day (9.35%)
