Yields on Kenya's Treasury bills have been on a rapid decline, triggering massive subscriptions in weekly auctions as investors seek to cash in before they fall to the lowest level. The Central Bank of Kenya (CBK) said in an update on Friday that the bills were oversubscribed for the fourth straight time this week. The 91-day bill attracted the most interest from investors, with bids received standing at 16 billion Kenyan shillings (123.4 million U.S. dollars) out of the 30.9 million dollars on offer. Meanwhile, the 182-day bill attracted bids worth 115.9 million dollars out of the 77.2 million dollars on offer, while the 364-day bill absorbed 88.9 million dollars out of the 77.2 million dollars on offer. The government accepted 330 million dollars from the 185.5 million dollars sought. Yields on the bills stood at 8.4 percent, 8.6 percent and 10 percent, respectively, marking declines from 8.5 percent, 8.8 percent and 10.1 percent the previous week. The rates have been on a downward trajectory, falling from a high of 15 percent in the past months. The average subscription rate for the three bills this week was 179 percent, an increase from 160.1 percent last week and the previous week's subscription stood at 224 percent. Investors' preference for the short-term papers has surged amid increased government borrowing, as it seeks to plug the budgetary deficit following the end in March of a financing program with the International Monetary Fund.
