Markets: Treasury Bill demand to fall

Subscription rates for Treasury Bills are expected to slip this week as banks build up their reserves due to tightening local currency liquidity, though traders expect yields to remain steady.

The central bank will sell Treasury Bills of all maturities worth a total of Sh8 billion this week.

“A lot of money that would go into the T-Bills will go into building reserves for the banks,” said Alex Muiruri, a fixed income trader at Kestrel Capital.

The yield on the benchmark 91-day Bill fell to 8.408 per cent at last week’s auction from 8.422 per cent the previous week, while yields on the 364-day and 182-day Bills both rose.

The yield on the 182-day Bill yield stood at 10.252 per cent from 10.248 per cent the previous week, while the yield on the 364-day Bill climbed to 10.576 per cent from 10.564 per cent.