KARACHI -- The government was unable to raise the desired amount from the market in its Treasury bill auction
held on Wednesday as the banks invested mostly in the three-month instruments indicating further uncertainty over future trend of interest rates.
Experts said the latest treasury bill auction
indicated that commercial banks were anticipating a further increase in the key interest rate in the near future.
The government raised Sh11.75 billion, less than half of the Sh24 billion target from last week's Treasury bill auction
, the Central Bank of Kenya said in an update.
He also said that the temporary tightness in the market was due to the Bureau of the Treasury absorbing P235 billion worth of treasury bonds, plus the weekly treasury bill auction
The currency strengthened on Tuesday as some banks trimmed their dollar positions in anticipation of strong appetite from foreign investors for this week's Treasury bill auction
, traders said.
Yields in Qatar's Treasury bill auction
fell on Tuesday to their lowest level since at least October 2012 as demand increased to its highest in as many months, central bank data showed.
Summary: Greece has raised Au1.3 billion ($1.69 billion) in a treasury bill auction
held after the country's bailout lenders approved the payment of a new batch of rescue loans.
Still, in signs of growing investor caution, Ljubljana raised far less funding than planned and at higher costs at a treasury bill auction
held after the OECD report and investors pushed the cost of insuring Slovenia's debt higher.
The pound was down against the euro at 1.23 after Greece raised 1.3 billion euros (PS1 million) in a three-month treasury bill auction
with demand to spare.
Portugal: Government reassures creditors but angers population: Portugal, which is under a bailout programme, conducted, on 19 September, a 'successful' treasury bill auction
- a sign of investor confidence.
Dealers said they were awaiting the result of a treasury bill auction
, due to be released on Wednesday.
Meanwhile, the Central Bank of Egypt (CBE) reduced the size of its treasury bill auction
yesterday, as yields surged to their highest level since the 2008 global economic crisis, according to Reuters.