This archive report was first published on 10 May 2020.
On May 6th, 2020, the Central Bank of Kenya (CBK) conducted a Treasury Bills auction, which received a total of KSh 15 billion in bids, representing a performance rate of 62.6% against the advertised amount of KSh 24 billion.
This is not the first time Treasury Bills have been a preferred choice for the CBK in raising cash from the domestic economy.
Separately, the 5-year Treasury Bond offered at the same auction saw a significant performance, with bids totalling KSh 50 billion, representing a performance rate of 69.1%. The interest rate for this bond increased slightly compared to the previous issue of a similar Treasury Bond.
On the secondary market, turnover of bonds traded increased by 19.2% during the week, while in the international market, yields on Kenya's Eurobonds declined by an average of 60.5 basis points.
The Kenya Shilling also strengthened against the greenback, exchanging at KSh 106.08 on May 7th, compared to KSh 107.29 on April 30th, 2020.
As of May 7th, the CBK's forex reserves remained adequate at $7,809 million, equivalent to 4.7 months of import cover, meeting the CBK's statutory requirement to maintain at least 4 months of import cover.
According to the CBK's Weekly bulletin, international oil prices recovered during the week, with global financial markets remaining optimistic following the gradual easing of lockdown restrictions in parts of Europe.
