Treasury bills attract Ksh41.7 billion as interest rates fall
Investors placed Ksh41.7 billion in bids for Treasury bills at the latest auction, significantly above the Ksh28 billion offered by the Government as demand for short-term government securities remained strong. The September 24 auction recorded a 149 per cent performance, with all three Treasury bill maturities attracting bids above their respective advertised amounts. The Central […]
Investors bid Ksh41.7 billion for Treasury bills in a recent auction, surging far above the Ksh28 billion amount allocated by the government. This marked a remarkable 149 percent performance, as all three bill maturities exceeded their advertised amounts. According to the Central Bank of Kenya's report on September 25, interest rates on the 91-day, 182-day, and 364-day Treasury bills all dropped during the week.
The 91-day bill drew Ksh17.74 billion in bids against Ksh8 billion on offer, with Ksh16.55 billion approved. The 182-day bill received Ksh12.76 billion in bids out of Ksh10 billion advertised, accepting Ksh10.26 billion. Lastly, the 364-day bill got Ksh11.23 billion in bids versus Ksh10 billion available, with Ksh6.54 billion accepted.
The average interest rates for the 91-day bill fell to 8.778 percent, the 182-day bill to 8.895 percent, and the 364-day bill to 9.043 percent. Liquidity in the banking sector remained robust during the week, with commercial banks holding excess reserves averaging Ksh15.8 billion over the mandated 3.25 percent cash reserve ratio.
The interbank market also saw increased activity, with transaction numbers rising from 19 to 27 and the traded value going up to Ksh14.5 billion from Ksh13.1 billion. Concurrently, the domestic bond market saw an activity surge, with turnover more than doubling to Ksh71.2 billion. The Nairobi Securities Exchange experienced gains across its main share indices, with the All Share Index up 5.61 percent, the 25 Share Index up 6.92 percent, and the 20 Share Index up 6.76 percent.
The index's market capitalization climbed by 5.61 percent to Ksh4.17 trillion, though there was a decline in the volume of shares traded and equity turnover. In international markets, yields on Kenya's Eurobonds rose by an average of 13.65 basis points during the week. The Kenyan shilling held steady against the US dollar, trading at Ksh129.48 on September 24 compared to Ksh129.62 the previous week.
Foreign exchange reserves totaled Ksh1.95 trillion, representing approximately 6.1 months of import cover.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
