Risk-averse commercial banks, the dominant participants in the Treasury bills auctions, have been scrambling for the 364-day papers as they look to lock in relatively high returns on stockpiles deposits. The Treasury has raised Sh78.44 billion in that period, Sh28.44 billion or 56.89 per cent more than the Sh50 billion it offered for sale. Analysts have attributed high appetite for the 364-day debt securities amid undersubscription for three- and six-month ones in the last three weeks to high liquidity. Commercial banks’ excess reserves stood at Sh15.4 billion in relation to the 5.25 per cent cash reserves requirement (CRR). The average interbank rate declined to 3.31 per cent on June 13 from 4.16 per cent on June 06,” said central bank.

Source: Daily Nation June 18, 2019 18:45 UTC