Markets in Focus: T-Bills Oversubscribed to 183.1 Percent

T-bills were oversubscribed last week, with the subscription rate coming in at 184.2 percent up from 183.1 percent the previous week.

According to a weekly report released by Cytonn Investments Limited, the subscription rates for the 91, 182 and 364-day papers came in at 194.6, 117.6, and 246.7 percent compared to 82.7, 78.6, and 327.8 percent respectively the previous week.

Yields on the 91 and 182-day papers declined by 10 bps each to 7.9 percent and 10.2 percent from 8.0 percent and 10.3 percent respectively the previous week.

The yield on the 364-day paper remained unchanged at 11.1 percent with analysts at Cytonn noting that the 364-day paper continued to receive the most interest from investors, having recorded the highest subscription rate of the 3 papers this week, at 246.7 percent from 327.8 percent the previous week, as investors seek to lengthen duration.

The acceptance rate for T-bills increased to 85.4 percent from 69.7 percent, the previous week, with the government accepting a total of 37.7 billion shillings of the 44.2 billion shillings worth of bids received, against the 24.0 billion shillings on offer.

The government is currently 39.1 percent ahead of its pro-rated domestic borrowing target for the current fiscal year, having borrowed 374.2 billion shillings, against a target of 269.0 billion shillings.