Kenya's short-term government bond auction sees exceptional demand, with 91-day bonds oversubscribed by nearly five times the target and yields rising across all maturities.

⑴ Kenya's central bank auction data on Thursday showed that 91-day treasury bills sold 23.62 billion shillings, far exceeding the target of 4 billion shillings, with a subscription rate close to 5 times. The 182-day bills sold 3.21 billion shillings, accounting for only 30% of the 10 billion shillings target, while the 364-day bills sold 8.91 billion shillings, also failing to reach the planned target of 10 billion shillings. ⑵ Winning yields for all maturities rose compared to the previous auction: the 91-day yield increased to 8.821% (from the previous 8.707%), the 182-day yield was 8.778% (higher than the previous 8.601%), and the 364-day yield was 8.975% (above the previous 8.872%). The brisk demand for short-term instruments and the relative coolness for medium- and long-term maturities reflect the market's preference for liquidity.