Treasury Bill rates set to decline, say analysts

Yields on Kenyan Treasury bills are likely to dip again next week, with extra shilling liquidity chasing the instruments and the central bank sending what traders saw as a signal that it would not accept the high rates seen earlier this month. Yields on all T-bill tenors rose above 22 per cent last week.

But the Central Bank accepted lower bids at this week's heavily oversubscribed auctions, with rates close to 21 per cent on 182-day and 364-day bills and below 20 per cent on 91-day paper.