NAIROBI: The yields on Kenyan Treasury bills are likely to ease slightly next week, with subscription rates expected to stay high due to increased shilling liquidity in the money markets.
Next week, the central bank will auction 9 billion shillings' ($103.57 million) worth of 91-day, 182-day and 364-day Treasury bills.
At this week's sale on Wednesday, the weighted average yield on the 91-day bills rose slightly to 8.799 percent from 8.783 percent previously, while that on the 182-day paper fell marginally to 9.774 percent from 9.822 percent.
The yield on the 364-day Treasury bills fell to 10.112 percent from 10.120 percent.
Traders said they expect the yields to ease slightly, due to increased shilling liquidity in the money markets. "It might come down slightly, by a very small margin, based on the liquidity in the market.
Subscription rates will be high," a trader at a commercial bank said.
On Friday, the central bank said it was in the market to absorb 15 billion shillings in excess liquidity, after taking out 5.35 billion shillings on Wednesday.
But the rates could also hold at the present levels. "The yields haven't been moving much the last two weeks, so I expect it to remain relatively at the same levels.
So what we saw this week, possibly, same sort of scenario we will see next week," said Mathangani Kariuki, fixed income trader at African Alliance Investment Bank.