CBK: Treasury bills attract Ksh56.7B bids, twice the amount on offer

The Central Bank of Kenya reported on Friday that Treasury bills attracted bids worth Ksh56.7 billion, more than double the Ksh28 billion initially offered. This performance marked a remarkable 202.6 percent increase, signaling strong investor appetite for government debt. The latest data, sourced from CBK's weekly bulletin, disclosed a decline in interest rates across 91-day, 182-day, and 364-day Treasury bills during the August 27 auction.

Despite the reduced yields, investors placed bids totaling over double the amount sought by the government, underscoring sustained interest in government securities, particularly shorter-term instruments with quicker maturities. Similarly, during the August 24 auction for Treasury bonds, the 10-year Treasury switch bond received bids totaling Ksh22.6 billion, exceeding the Ksh15 billion advertised by 150.6 percent.

Furthermore, CBK is conducting a Ksh10 billion Treasury bond switch auction, providing an opportunity for investors to exchange existing government bonds for longer-dated issues. The switch involves two bonds - FXD1/2013/015 and FXD4/2019/010 - with differing coupon rates and maturities. Only those holding unencumbered amounts of the source bonds as of September 7, 2026, are eligible to participate.

The auction period, running from August 27 to September 7, 2026, concluded with bids closing at 10am on September 7, with settlement scheduled for September 9.