Investors Shy Off CBK Tap Sale, T- bills Oversubscribed
The government raised KSh 486.5 million against the targeted KSh 20 billion in the July tap sale issue of the FXD1/2023/002, missing the target by 97%.
Nevertheless, weekly treasury bills were oversubscribed for the first time in four weeks, with the over-subscription jolting higher to 124.4%% from 32% recorded the previous week.
The Central Bank of Kenya (CBK) accepted bids worth KSh 27.9 billion out of the KSh 29.9 billion received, reflecting a 93.4% acceptance rate.
Demand remained pegged on the 91-day paper, which attracted bids worth KSh 12.8 billion against the KSh 4 billion on offer, an oversubscription of 370.1%. The CBK however accepted KSh 12.8 billion on this tenor.
Both the 182-day and 364-day papers saw substantial increases in subscription rates to 94.2% and 56.3% respectively.
The accepted average yields on the three papers saw an uptick from the previous week, increasing to 15.99%, 16.80%, and 16.83% for the 91-day, 182- day and 364-day papers respectively. This comes amid looming rate cuts with the inflation rate now trailing within the lower bound target range.