Nairobi, Aug. 31 -- The weekly Treasury bills auction at the Central Bank of Kenya (CBK) was undersubscribed for the third straight week, with investors instead pumping money into bond auctions in search of higher yields.
The slowing demand in the T-bill market is also an indicator of tightening liquidity in the money market, following weeks of heavy borrowing from the domestic market by the Treasury.
CBK data shows that in last week's T-bills auction, investors offered the government a total of Sh12.56 billion against the target of Sh24 billion across the three tenors of 91, 182 and 364- days.
CBK took up Sh10.73 billion, with the rates across all three tenors recording marginal increases of between 0.1 and 2.5 basis points.
In the pre...