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Economy

Kenyan Treasury bill demand to fall, yields steady

Date: Apr 17, 2015

Subscription rates for Kenyan Treasury bills are expected to slip next week as banks build up their reserves due to tightening local currency liquidity, while traders expect yields to remain steady.

The central bank will sell Treasury bills of all maturities worth a total of 8 billion shillings ($85.70 million) at two separate auctions. "I don't see much change in yield. It's been fairly flat, "said Alex Muiruri, fixed income trader at Kestrel Capital.

"A lot of money that would go into the T-bills will go into building reserves for the banks," Muiruri added, saying he expected to see lower subscription rates.

The yield on the benchmark 91-day bill fell to 8.408 percent at this week's auction from 8.422 percent last week, while yields on the 364-day and 182-day bills both rose.

The yield on the 182-day bill yield stood at 10.252 percent from 10.248 percent last week, while the yield on the 364-daybill climbed to 10.576 percent from 10.564 percent.

--reuters--