T-Bills Oversubscribed During the Week to 140.5%

Treasury bills were oversubscribed during the week, with the overall subscription rate coming in at 140.5 percent compared to 132.3 percent recorded the previous week.

The subscription rates for the 91, 182 and 364-day papers came in at 116.8, 112.2, and 178.3 percent respectively compared to 52.4, 125.1, and 171.5 percent respectively the previous week.

According to a report released by Cytonn Investments Limited, yields on the 91, 182 and 364-day papers remained unchanged at 8.0, 10.4 and 11.2 percent respectively.

The overall acceptance rate declined to 81.4 percent compared to 99.7 percent the previous week with the government accepting a total of 27.5 billion shillings of the 33.7 billion shillings worth of bids received against the 24.0 billion shillings on offer.

The government is still behind its domestic borrowing target for the current fiscal year, having borrowed 192.3 billion shillings against a target of 260.3 billion shillings (assuming a pro-rated borrowing target throughout the financial year of 410.2 billion shillings).

If the domestic borrowing target is revised downwards to 293.8 billion shillings as per the Draft 2018 Budget Policy Statement (BPS) that is yet to receive Cabinet approval, the pro-rated target comes in at 186.4 billion shillings meaning the government will be ahead of its borrowing target.