Tight liquidity haunted the money markets in a short trading week featuring two public holidays, with the Treasury bills undersubscribed for the seventh week in a row.
During last week’s auction held last Friday, the overall subscription rate came in at 34.17 per cent compared to 46.7 per cent the previous week.
“There was tight liquidity in the money market. The tight liquidity was due to heavy transfer of taxes from banks and reverse repo maturities that came in at Sh29 billion and Sh17.4 billion respectively,” said Cytonn Investments analysts.
The Central Bank of Kenya (CBK) weekly report showed net borrowing by the government resulted in liquidity withdrawal of Sh5.3 billion.
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