Kenyan debt yields seen rising this week

The yields on the Treasury bills are likely to inch up at this week's auction in step with rising overnight rates. The Central Bank will sell Treasury bills of all maturities worth a total of Sh8 billion in two separate auctions during the week.

Traders said an acute liquidity squeeze in the money markets would also push yields up as it could potentially curb demand at the auctions. The overnight lending rate hit a high of 14.02 per cent last Wednesday.

"The money market is tight so the few guys who will subscribe will want a premium," said Sammy Maikweki, a fixed income trader at Sterling Investment Bank.

Yields on the one year and six months Treasury bills fell at auction last week while that of the 91-day bill edged up.