NAIROBI (Xinhua) --
The Central Bank of Kenya (CBK) will conduct
auctions for all Treasury bills on a single day as it seeks to
normalize uptake of the securities by investors.
CBK on Thursday
announced that the auctions for 364-day and 91-day Treasury
bills would be held every Thursday from next week.
Initially, the CBK
has been conducting auctions for 364-day and 182-day bills every
Wednesday and the 91-day bill auction every Thursday.
However, it recently
suspended the auction of the 182-day bill following the paper’s
over performance by recording an up to 400-percent subscription.
security, before its suspension, was investors’ favorite as it
offered higher returns on a risk-adjusted basis compared to the
364-day, as their rates almost converged at 10.5 and 10.9
The suspension, in
its third week, was to help CBK avoid heavy maturities from the
paper, and it has helped push investors to bid on the 3-month
and 1-year papers.
Analysts noted that
the move to sell all the Treasury bills on the same day would
help eliminate cases of investors ignoring auctions of some
papers in favor of another.