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Fixed income investors eye T-bills, avoid Treasury bonds
The shift comes ahead of CBK policy meeting, which is expected to signal the general trend of interest rates in the coming months through the benchmark rate – which was frozen for the first time in April since June 2024.
Fixed-income investors are scrambling for Treasury bills and cutting their appetite for Treasury bonds, hoping returns on government paper will increase and force the state to rely on short-term borrowing.
Three of the last four Treasury bill auctions have been oversubscribed. In contrast, bond auctions in May and June underperformed, reflecting the switch to shorter government paper as investors bet on the rates increasing.
