The subscription of T-Bills dipped during the month of August as investors’ participation remained skewed towards longer-dated papers.
The average subscription rate for the month came in at 85.1 percent, a sharp decline from 157.4 percent recorded during the month of July.
The average subscription rate for the 91, 182 and 364-day papers came in at 57.9, 59.7 and 121.3 percent from 70.2, 90.2 and 258.6 percent respectively.
Yields on 91-day paper remained constant at 7.6 percent, while yields on the 182 and 364-day papers declined by 0.1 and 0.2 percent respectively.
The average T-Bills acceptance rate came in at 90.3 percent during the month, compared to 74.4 percent in July with the Kenyan government accepting 73.8 billion shillings of 81.7 billion shillings worth of bids received.
As the T-Bills dipped during the month, last week saw an oversubscription of the same at the rate of 176.1 percent from 120.4 percent the previous week.
Last week saw the yields on the 91-day paper increasing by 0.1 percentage points to 7.7 percent from 7.6 percent the previous week.
Yields on the 182 and 364-day papers remained unchanged at 9.0 and 9.9 percent with the acceptance rate coming in at 77.8 percent from 79.3 percent.
The government accepted 32.9 billion shillings last week of the 42.3 billion shillings worth of bids received.
The subscription rate for the 91 and 364-day papers improved to 289.6 percent and 216.9 percent from 48.4 percent and 175.4 percent the previous week.
Last week, the subscription rate for the 182-day paper declined to 90.0 percent from 94.1 percent the previous week as investors remained skewed towards longer-dated papers.
The 91-day T-Bill is currently trading at 7.6 percent which is below its 5-year average of 9.0 percent. The lower yield on the 91-day paper is mainly attributable to the low-interest rate environment experienced since the passing into law of the capping interest rate.
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