Yields on Kenyan Treasury bills rise in auction

NAIROBI: The weighted average yield on Kenya's 364-day Treasury bill rose to 16.301 percent during auction on Wednesday from 15.768 percent at last week's sale, the central bank said.

During the same auction, the yield on the 182-day Treasury bill also went up, to 14.551 percent from 13.861 percent last week, the bank said.

Demand was poor at the auction, with only a 5.31 percent subscription rate for the 4 billion shillings ($37.91 million)worth of 182-day bills on offer and 11.81 percent for a similar amount offered through one-year bills.

Policymakers began tightening policy in June, to combat extreme volatility in the foreign exchange market, sending rates higher.

The bank said it will offer Treasury bills of all maturities at two separate auctions next week to raise a combined 12 billion shillings.