Treasury Bills Oversubscribed As Main Papers Remain Unchanged

Treasury bills were oversubscribed last week according to a report released by Cytonn Investment Limited.

According to Cytonn, the overall subscription rate for Treasury Bills came in at 132.3 percent compared to 138.3 percent recorded the previous week.

The subscription rates for the 91, 182 and 364-day papers came in at 52.4, 125.1, and 171.5 percent respectively compared to 143.0, 129.6, and 145.1 percent respectively the previous week.

Yields on the 91, 182 and 364-day papers remained unchanged at 8.0, 10.4 percent and 11.2 percent respectively.

The overall acceptance rate rose to 99.7 percent compared to 84.5 percent the previous week with the government accepting a total of 31.7 billion shillings of the 31.8 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 194.4 billion shillings against a target of 252.4 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 180.8 billion shillings meaning the government will be ahead of its borrowing target.

The usage of the Central Bank overdraft facility declined by 35.7 percent to 29.9 billion shillings from 46.5 billion shillings the previous week, compared to a nil overdraft at the beginning of this fiscal year.