Kenya Treasury bills · auction of 27 May 2013
Kenya T-bill auction, 27 May 2013: 91-day at 8.482%, down 89 bps
At the Treasury bill auction dated 27 May 2013, the Central Bank of Kenya cleared the 91-day bill at 8.482% (down 89 basis points), the 182-day bill at 9.430% (down 55 basis points) and the 364-day bill at 10.108% (down 104 basis points).
Demand was strong: bids totalled KES 35.6bn against KES 10.0bn on offer, a subscription rate of 356%. The government accepted KES 10.0bn, or 28% of what was bid.
The 364-day paper drew the most interest relative to its size, at 472% subscribed.
Over the past year the 91-day rate has ranged from 7.515% to 13.226%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 8,592 in 12 months on the 364-day bill, after tax
Put KES 100,000 into the 364-day bill at this auction and you get back KES 108,592 after 12 months: KES 8,592 in interest after 15% withholding tax (KES 10,108 before), about KES 716 a month.
That is KES 888 less than the same money would have earned at the previous auction.
For shorter money: KES 4,008 on the 182-day bill (6 months), KES 1,802 on the 91-day bill (3 months).
The Central Bank’s minimum bid is KES 100,000, and the government pays the full amount at maturity; the risk is Kenya’s government not paying, and the money is locked until then.
Kwa Kiswahili
Ukiweka KES 100,000 kwenye hati ya siku 364 kwa riba ya mnada huu, utarudishiwa KES 108,592 baada ya miezi 12: riba ya KES 8,592 baada ya kodi ya zuio ya 15% (KES 10,108 kabla ya kodi), yaani takriban KES 716 kwa mwezi.
Hiyo ni KES 888 pungufu ya kiasi ambacho pesa hiyo hiyo ingepata kwenye mnada uliopita.
Kiwango cha chini cha Benki Kuu ni KES 100,000. Serikali hulipa yote mwishoni mwa muda; hatari ni serikali kushindwa kulipa, na pesa haipatikani hadi muda uishe.
Compare with money market funds and bank deposits, after tax →
Results
By tenor
| Tenor | Rate | Previous | Offered | Bids | Subscription | Accepted | Price /100 |
|---|---|---|---|---|---|---|---|
| 91-day | 8.482% | 9.376% | KES 3.00bn | KES 8.65bn | 288% | KES 4.07bn | — |
| 182-day | 9.430% | 9.980% | KES 3.00bn | KES 8.05bn | 268% | KES 2.17bn | 95.509 |
| 364-day | 10.108% | 11.153% | KES 4.00bn | KES 18.86bn | 472% | KES 3.79bn | 90.843 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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