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Headline : Treasury Bill Rates Decline as Demand Surges 

Read more from the original article on here at kenyanwallstreet.com.




Tags : #treasury #bill #rates #decline #demand #surges



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Interest rates on treasury bills have declined for 10 consecutive weeks, falling to levels last seen in 2023 following the 100 basis points interest rate cuts delivered by the Central Bank of Kenya (CBK).

Demand remained skewed to the shorter term 91-day paper as investors continue to assess possible duration risks. However, with the downward trend on the yields, the dynamics might change towards longer dated papers.

The 91-day paper attracted bids worth KSh17.4 billion against the KSh4 billion on offer. The 182-day and 364-day papers received bids worth KSh34.2 billion and KSh29.4 billion respectively against the KSh10 billion on offer in the tenors.

Yields on all the tenors declined, extending the downward trend that set in after the CBK began the easing cycle in August. Yields on treasury bills typically decline ahead of expected interest rate cuts and drop further after rate cuts.

Read more from the original article on here at kenyanwallstreet.com.


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