Kenyan Treasury bill yields to rise

The yields on Kenya’s Treasury bills and a bond on sale next week are expected to rise, but at a slower rate, traders said. The central bank will auction 91-day, 182-day and 364-day Treasury bills worth a total Sh12 billion in two auctions next week.

The bank will also auction a one-year amortised Treasury bond worth up to Sh20 billion next week. “On the Treasury bills, they will continue to gain consistently in terms of the (weighted) average yields ... stabilising at levels of around 22, 23 percent. It’s nearing the top,” a fixed income trader at one brokerage house said. At this week’s sale, the weighted average yield on 91-day Treasury bills rose to 22.133 percent from 21.353 percent last week, while that on the 182-day bill jumped to 21.840 percent from 21.607 percent last week. The yield on the 364-day Treasury bills rose to 21.882 percent from 21.498 percent last week.