Relief as 91-day Treasury bills dips further

Relief as 91-day Treasury bills dips further

The Central Bank of Kenya (CBK)on Friday announced of the average yield on Kenya’s 91-day Treasury bills have fallen for the fourth consecutive week to 9.578 percent at this week’s auction from 9.654 percent last week.

The CBK offered bills worth Ksh6 billion at Thursday’s auction, and received bids worth Ksh4.69 billion.

It accepted bids worth Ksh4.67 billion.

Interest rates on t-bills have been on the decline since late October when yields on short-term government debt were above 20 percent.

This comes just days after the CBK announced how treasury bills are increasingly becoming a pointer to lower interest rates and yields on Kenya’s 182-day and 364-day.

Yields on both short-term government securities were above 21 percent two weeks ago.

According to Joshua Oigara, the Chairman of the Kenya Bankers Association and Group Chief Executive Officer of Kenya Commercial Bank (KCB), all commercial banks are expected to lower their lending rates in line with this latest reduction in interest rate.

Interest rates had soared above 25 percent and this was caused by a dramatic rise in yields on government Treasury bills which are a key determinant of lending rates.

To bring down the cost of money, CBK has been injecting fresh liquidity into the money markets with its latest intervention being its injection of Ksh6 billion.

The CBK had offered bills worth Ksh12 billion and accepted bids worth Ksh16.5 billion.

It, however, got offers worth Ksh45.96 billion.

Want to send us a story? Submit on Wananchi Reporting on the Citizen Digital App or Send an email to wananchi@royalmedia.co.ke or Send an SMS to 25170 or WhatsApp on 0743570000

Leave a Comment

Comments

No comments yet.

latest stories