Yesterday the Central Bank of Kenya (CBK) auctioned 182 day and 364 day Treasury bills worth KES 2 billion each.

For the 182 day ones the bank received 73 bids amounting to KES 283 million. This represents a subscription rate of 14%. All the bids were accepted. For the 364 day one, the bank received 22 non-competitive bids amounting to KES 48 million. This represents a subscription rate of 2%. These are the lowest subscription figures in the history of the pesatalk.

Despite the dismal demand for the government securities the weighted average rate on the 182 day T-bill increased by 0.423 percentage points to 10.750%. The rate on the 364 day bill remained at 12.431% since there were no competitive bids.

The results of the auction are summarised below:

[caption id="attachment_9937" align="alignleft" width="781" caption="The results of yesterday's CBK Auction"][/caption]

[caption id="attachment_9938" align="alignleft" width="781" caption="A comparison of the yields at the last two CBK Auctions"][/caption]