People’s curiousness to invest in Treasury bills is diminishing following the decreasing rates the investment category is fetching.
Treasury bills interest have been falling following the local currency’s appreciation two months ago.
The demand for the document was high in January when its interest was averaging 20%, – a super-normal comparing to the current 16 percent.
The reduction has impacted the public’s appetite to invest in the document.
For instance, during the week ending 8th April 2014, authorities raised K7.1 billion against an announced amount of K10 billion, with zero percent rejection rates.
This translates to an under subscription.
“Total application stood at K7.1 billion representing a zero percent rejection rate and an under subscription of 29.1%.
“The Treasury bills rate for the 91 days tenor increased to 11.83 percent from 11.17 percent, the 182 days rate increased to 15.75 percent from 13.76 percent and the 364 days rate increased to 18.25 percent from 17.89percent. RBM report reads in part.