High liquidity boosts uptake of Kenya’s gov’t securities

NAIROBI, Nov. 3 (Xinhua) — Investors’ uptake of the Kenyan government securities increased significantly for the first time in three auctions this week boosted by high liquidity in the money market.

The three government Treasury bills recorded an overall subscription of 106.4 percent up from 66.8 percent in the previous week, the Central Bank said in its weekly brief received Saturday.

“The improvement in performance was due to high liquidity conditions in the market,” said the bank, attributing the situation to improved government payments.

The auction for the securities received bids totaling 255 million U.S. dollars against an advertised amount of 240 million dollars.

“The 91-day and 364-day tenures were oversubscribed at 128.4 percent and 144.3 percent, respectively. The 182-day tenure was, however, undersubscribed at 59.7 percent. Interest rates on all Treasury bill tenors declined,” said the Central Bank.

Meanwhile, the high liquidity helped to lower the interbank rate to 2.86 percent from 3.83 percent, enabling banks to borrow from each other cheaply.

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