Capital market participants reduced demand for government-issued short-term debt in March 2019, with subscriptions for 91-day Treasury bills falling to 16.93% of the Sh4 billion offered, according to Central Bank of Kenya (CBK) figures.
The 91-day bill auction on March 7 saw bids total Sh677.22 million, compared to Sh2.94 billion in the prior week. This marked the lowest subscription rate since July 2013, when similar yields were recorded.
Similar trends affected 182-day debt instruments, which attracted Sh6.14 billion in bids for a Sh10 billion issuance—down from Sh7.76 billion in late February. The CBK accepted all applications for the three-month paper at an average yield of 6.886%.
While six-month T-bill bids faced partial rejection, with Sh2.30 billion declined, one-year paper saw increased interest. The CBK fully accepted all bids for the 12-month instrument, indicating stronger investor confidence in longer-term debt despite overall market caution.
