Interest rates on government short- term papers in Kenya declined in the last auction as investors’ appetite for the securities soars.
Weighted average yield on the Treasury bills, which are a favourite with individual investors, declined by at least 0.3 per cent.
The fall of the interest rates comes after steady rise in the past months, which saw yields jump from a low of 9.3 per cent in early June to 13.4 percent on July 30.
Central Bank of Kenya (CBK) results for the offer indicated that interest rate for the 91-day Treasury bill dropped by 0.36 percent in this auction.
“The market weighted average rate was 13.1 percent and the weighted average of accepted bids, which will be applied to non- competitive bids, was 12.9 percent, down from 13.2 percent in the previous auction,” said Gerald Nyaoma, the bank’s director Financial Markets Department in a brief on the auction.
Similarly, the results indicate that interest rate for 182-day Treasury bills fell by 0.34 per cent in this auction.