Government yields seen holding steady

The yields on Treasury bills are expected to hold steady this week, although extra liquidity might put slight downward pressure on 182-day or 364-day bill yields. “The change will be marginal,” said Alex Muiruri at Kestrel Capital, adding that delayed government payments to local authorities expected to come this week could increase shilling liquidity. He said 91-day bill yields were likely to hold firm. The central bank will offer 91-day, 182-day and 364-day Treasury bills worth a total of Sh9 billion during this week’s auctions. “We expect interest rates to hold where they are right now,” said Peter Njuguna, head of fixed income at KCB group.