NAIROBI (Xinhua) --
Kenya’s Treasury has suspended the sale of
182-day bill for the auction dated March 13 to keep away
investors targeting it for higher yields.
The Treasury bill
was massively oversubscribed for the fifth week running this
week despite its yields falling slightly as its peers, the
91-day and 364-day, continued to perform poorly.
As in the previous
week, the Central Bank of Kenya (CBK) in this week’s auction put
up for sale bids worth 58 million U.S. dollars for the 182-day
“The total number of
bids received amounted to 234 million dollars, representing a
403-percent subscription,” said the apex bank in auction data
CBK accepted 200
million from investors at an interest of 10.525 percent, a
slight drop from 10.529 percent.
Last week, the bank
received bids that amounted to 240 million dollars representing
a 412-percent subscription for the paper.
The high performance
of the paper, according to analysts, pushed CBK to suspend its
sale as it sought to cut back on expensive loan and divert
investors’ attention to the other securities that have for the
last five weeks remained undersubscribed.
“There will be no
auction for the 182-day Treasury bill for the value date
13-03-2017,” said CBK in a notice Thursday.
According to Cytonn,
a Nairobi-based investment firm, investors’ preference at the
debt market has been more skewed towards the 182-day paper as it
continues to offer investors higher returns on a risk-adjusted
This week, the
364-day paper managed a subscription of 57 percent, with bids
amounting to 32 million dollars. Last week, the bill raised 9.6
million dollars representing a 18-percent subscription.