The Central Bank of Kenya (CBK) Treasury Bills auction was undersubscribed for the second consecutive week, receiving KES 17.0 billion in bids against an offer of KES 24.0 billion, translating to a performance rate of 70.9%. This was an improvement from the 45.5% subscription rate recorded in the previous week.
The 91-day paper received bids worth KES 1.21 billion against an offer of KES 4.0 billion, translating to a subscription rate of 30.1%, down from a subscription rate of 64.9% in the previous week.
Investor appetite for the medium-term paper increased, with the 182-day paper receiving bids worth KES 9.09 billion against a target of KES 10.0 billion, representing a subscription rate of 90.9%, higher than the subscription rate of 28.3% recorded in the previous week.
The 364-day paper posted a performance rate of 67.1%, up from 54.9% in the previous week. The bill attracted bids worth KES 6.71 billion, against a target of KES 10 billion.
The CBK accepted KES 16.95 billion, translating to an acceptance rate of 99.7%.
Yields recorded mixed performance. Yields on the 91-day paper fell by 2.61bps to 7.400% from 7.4261% recorded in the previous week, while yields on the 364-day paper declined by 0.35bps to 8.2780%. Meanwhile, yields on the 182-day paper rose marginally by 0.08 bps to 7.8300% from 7.8292%.
CBK MPC Meeting Outlook
Looking forward, all attention turns to the upcoming CBK Monetary Policy Committee (MPC) meeting scheduled for April 8, 2026, when the apex bank is expected to provide clearer guidance on the direction of the Central Bank Rate (CBR). Any change on the policy rate is likely to influence yield levels across tenors. In the last meeting, the CBK lowered the CBR by 25 basis points to 8.75%.
Read: Government Raises KES 50B from Reopening of Long-dated Bonds
