T-Bill subscription spiked last week according to stats contained in this week’s report by Cytonn Investments.
According to last week’s stats, the overall subscription rate for T-Bills came in at 120.9 percent, a rise from 85.9 percent recorded the previous week.
The yields on the 91-day and 182-day papers remained unchanged at 7.6 percent and 8.6 percent respectively, while the yield on the 364-day paper declined by 10 bps to 9.6 percent from 9.7 percent the previous week.
The acceptance rate for T-bills dropped to 80.8 percent from 94.8 percent the previous week, with the government accepting 23.4 billion shillings of the 29.0 billion shillings worth of bids received.
The subscription rate for the 91-day paper declined to 98.5 percent from 127.4 percent the previous week, while the subscription rate for the 182-day and 364-day papers gained to 65.4 percent and 185.3 percent from 50.9 percent and 104.3 percent recorded the previous week.
During last week, investors’ participation was skewed towards the longer dated paper.
Last week saw the average interbank rate increasing to 5.2 percent from 4.4 percent the previous week, pointing to reduced liquidity in the market.
At the same time, the average volumes traded in the interbank market increased by 26.1 percent to 14.3 billion shillings from 11.3 billion shillings the previous week.
The increased activity was attributed to increased demand for funds in the interbank markets at the beginning of the week amidst tight liquidity, due to tax remittances.
Liquidity however improved towards the end of the week, with the interbank rate declining to 4.2% from 5.7 percent as at the beginning of the week, which the Central Bank of Kenya attributed to increased government payments.
As the new week kicks off, market analysts say that more activities might be witnessed this week. They. However, see the discussion going on about the referendum affecting the markets in the near future.