Treasury turns away Sh9.3 billion debt offers from investors
The National Treasury turned away Sh9.29 billion in debt bids during this week’s auction of Treasury bills – the instruments it uses to borrow cash for short-term budgetary support. The Central Bank, its fiscal agent, reported it accepted bids worth Sh17.79 billion out of the Sh27.08 billion received. There was a 69.25 per cent oversubscription to Sh27.08 billion against Sh16 billion on offer. About Sh5.35 billion at an interest of 7.89 per cent was raised from bids of Sh6.34 billion for the 91-day T-bills against Sh4 billion offered on Thursday. The CBK raised Sh5.16 billion at 10.57 per cent from Sh10.07 billion bids for the 182day papers against a target of Sh6 billion, while Sh7.28 billion at 10.60 per cent interest was accepted from Sh10.67 billion bids on Wednesday for the 364-day T-bills. The auction is dominated by commercial banks which are reeling from interest controls that have hit their revenue streams. “Once the law was signed, some bankers tried to move their assets to government securities,” CBK governor Patrick Njoroge said on Wednesday, adding it is not an open door as there is a supply constraint.