Subscriptions of T-Bills Continue to Rise A Third Week Running

By Juma Fred / February 20, 2017

Eurobond

During the week, T-bill auctions were oversubscribed for the third week running, with overall subscription coming in at 182.5 percent, compared to 174.5 percent recorded the previous week according to a report released by Cytonn Investments.

According to the report, the subscription rates for the 91, 182 and 364-day papers came in at 37.8, 300.4 and 161.1 percent respectively compared to 44.0, 298.6 and 137.4 percent the previous week, respectively.

The 91-day paper continues to witness undersubscription as investor preference is more skewed towards the 182 and 364-day papers which continue to offer investors higher returns on a risk-adjusted basis, says the report.

Yields on the 91, 182 and 364-day T-bills remained relatively unchanged during the week, closing at 8.6, 10.5 and 10.9 percent respectively from 8.7, 10.5 and 10.9 percent respectively the previous week.

The Central Bank (CBK) has remained disciplined in stabilizing interest rates in the auction market by rejecting bids that CBK considers as above the market, and the market has responded to this with the current overall bids received acceptance rate of 90.7 percent compared to 71.6 percent at the beginning of the year.

The liquidity in the money market was relatively stable with a slight reduction in the overall liquidity position by 3.8 billion shillings and this led to the average interbank rate remaining stable at 6.8 percent whereas the volumes transacted decreased to 10.4 billion shillings from 16.5 billion shillings transacted the previous week.

There was a decline in government payments and T-bill redemptions, which came in at 21.8 billion shillings and 20.6 billion shillings from 9.7 billion shillings and 23.7 billion shillings respectively the previous week.

There was also a decrease in Term Auction Deposit placements by commercial banks, which came in at 19.3 billion shillings from 40.2 billion shillings the previous week.



About Juma Fred

Juma Fredrick is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it. You can reach him on: (020) 528 0222 or Email: [email protected]

View other posts by Juma Fred



Other Related Articles








SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2018
  • January 2018 (291)
  • February 2018 (221)
  • March 2018 (279)
  • April 2018 (144)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (206)
  • July 2017 (190)
  • August 2017 (196)
  • September 2017 (186)
  • October 2017 (236)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (167)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (250)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (244)
  • December 2016 (154)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (189)
  • October 2015 (171)
  • November 2015 (174)
  • December 2015 (208)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950