During the week, T-bills were oversubscribed with overall subscription increasing to 107.0 percent, compared to 100.6 percent recorded the previous week according to the weekly report from Cytonn Investments.
The subscription rates on the 91-day and 364-day papers increased during the week coming in at 108.4 percent and 90.4 percent from 34.0 and 79.0 percent respectively, the previous week whereas the subscription rate on the 182-day paper decreased to 122.6 percent from 166.7 percent the previous week.
Despite the fall in subscription levels for the 182-day paper during the week, the same continues to be the most preferred paper as it offers the highest return on a risk-adjusted basis.
Yields on the 91-day and 364-day Treasury bills were on an upward trend coming in at 8.0 and 10.6 percent this week up from 7.7 and 10.4 percent the previous week, respectively, while yields on the 182-day Treasury bill remained relatively unchanged at 10.3 percent.
The 91-day T-bill is currently trading below its 5-year average of 10.4 percent. The downward trend for the 91-day paper is mainly attributed to the expected low interest rate environment following
According to Bloomberg, yields on the 5-year Eurobond decreased by 0.1 percent points week on week to 4.2 percent from 4.3 percent the previous week with the 10-year Eurobond remaining unchanged at 6.8%. Since the mid-January 2016 peak, yields on the Kenya Eurobonds have declined by 4.6% points and 2.9% points, respectively for the 5-year and 10-year bond, due to improving macroeconomic conditions. This is an indication that Kenya remains an attractive investment destination.