Trea­sury turns away Sh9.3 bil­lion debt of­fers from in­vestors

The Star (Kenya) - - News Business -

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.

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