The Central Bank of Kenya will auction 12 billion shillings worth of 91-day, 182-day and 364-day Treasury bills.
Yields on short-term Kenyan debt will rise in line with the recent upward trend in rates.
At this week’s sale, the weighted average yield on the 91-day bills rose to 10.25 percent from 9.275 percent and to 10.711 percent from 10.323 percent on 182-day paper. One-year Treasury bills were up at 10.981 percent compared with 10.239 percent last week.
Fixed-income traders said they expected the trend to continue upwards, due to the government’s tendency in recent weeks to sell more Treasury bills than advertised.
“I think the government has a big appetite for money. Investors will continue bidding on the Treasury bills,” Bank of Africa trader Robert Gatobu said. “I do not see us going below double-digit figures anymore.”
However, the subscription rate could be constrained by some money being tied up in tax payments and settlement for Treasury bonds that were sold this week, another trader said.
