Abacus Wealth Management

Investors Prefer Longer-dated Bills

Yesterday the Central Bank of Kenya (CBK) auctioned 91 day Treasury bills worth KES 2 billion. The bank received 159 bids amounting to KES 632 million representing a subscription rate of 32%. The bank accepted bids worth KES 584 million. The yield on the short term securities increased from 9.801% last week to 10.537%.

The results are summarised below:

Results of Yesterday's CBK Auction

 

Results of Yesterday's CBK Auction

Longer-dated Securities

It seems that investors prefer longer dated securities as the 182 day Treasury bills received an over-subscription of 121%. The number of bids at that auction also increased from the previous one. At the 91-day auction the amount bid was KES 584 million as compared to the KES 2.4 billion bid at yesterday’s auction.

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