Kenya's T-bills yields rise despite heavy bidding

Yields on Kenya's government securities continued to rise this week despite high bidding from investors that saw all offers by Treasury oversubscribed.

The government put on sale 91-day bills worth 39 million U.S. dollars, as in the previous week, and received bids worth 42 million dollars, representing a subscription of 107 percent.

"The weighted average of accepted bids which will be applied for non-competitive bids was 8.23 percent up from 8.11 percent in the previous auction," said the Central Bank of Kenya (CBK) in auction results released Friday.

Similar scenarios were recorded with the 182-day and 364-day bills that the CBK offered for 118 million dollars and 59 million dollars respectively.

The CBK has taken up a large percentage of bids submitted to auctions to cover up for the heavy maturities in the domestic market, pushing down yields marginally.

Analysts, however, noted the rates would stabilize in the coming weeks as the heavy uptake of the bills by investors seeking to cash in on rising rates continues.