The Central Bank of Kenya (CBK) Treasury Bills auction was oversubscribed in the 19th week, bringing to an end a three-week streak of undersubscription.
The auction attracted KES 29.42 billion against an offer of KES 24.00 billion, translating to an overall subscription rate of 122.6% compared to 77.00%, 57.4%, and 58.3% in the previous three weeks, respectively.
The 91-day paper remained oversubscribed relative to the previous week. The paper posted a subscription rate of 243.5%, up from 200.0% in the previous week after, receiving bids totaling KES 9.74 billion against a target of KES 4.00 billion. Demand for the 182-day paper improved. The paper attracted KES 14.52 billion in bids against an offer of KES 10.00 billion, representing a subscription rate of 145.2%, compared to 32.6% in the previous week.
Meanwhile, investor appetite for the 364-day paper waned, with the tenor attracting KES 5.16 billion, against a target of KES 10.00 billion, representing a subscription rate of 51.6%, down from 71.9% recorded in the previous week.
Out of the bids, the CBK accepted KES 29.41 billion, translating to an acceptance rate of 99.97%.
CBK T-Bill Yields Remain Above 8% Amid Rising Inflation
Yields recorded mixed performance but remained above the 8.0% mark across all tenors. Yields on the 91-day paper and 364-day paper increased by 14.97 bps and 0.12 bps to 8.1895% and 8.5145%, respectively. Meanwhile, yields on the 182-day paper declined marginally by 0.15 bps to 8.2100% from 8.2115% in the previous week.
With April 2026 inflation standing at 5.6%, up from 4.4% in March, the 91-day, 182-day, and 364-day papers real returns translate to 2.6%, 2.6%, and 2.9%, respectively.
