T-Bill Subscription Up By 50.5% During The Week

During the sessions last week, T-Bills remained oversubscribed with the overall subscription rate increasing to 183.8 percent from 133.3 percent recorded the previous week.

The continued oversubscription of the T-Bills was attributable to favorable liquidity in the market supported by government payments.

The yields on the 91-day paper rose by 0.1 percentage points to 6.6 percent from 6.7 percent recorded the previous week.

The yields of the 182-day paper rose by 0.1 percentage points to 7.5 percent from 7.4 percent as recorded the previous week.

The 364-day paper, however, remained unchanged at 8.6 percent.

The acceptance rate for all treasury bills bid increased to 100 percent from 94.2 percent recorded the previous week.

The government accepted all the 44.1 billion shillings worth of bids received, higher than the weekly quantum of 24.0 billion shillings.

Read:

• T-Bills Sustain an Over-subscription Trend on Account of Favorable Liquidity
• T-Bills Remain Oversubscribed During the Week Due to Improved Liquidity

Investors’ participation remained skewed towards the longer-dated paper, with the continued demand being attributable to the scarcity of newer short-term bonds in the primary market.

The 91-day, 182-day, and 364-day papers registered improved subscription to 81.1, 111.1 and 297.7 percent from 53.8, 48.2 and 250.2 percent recorded the previous week, respectively.

In the money markets, 3-month bank placements ended the week at 8.8 percent (based on what we have been offered by various banks), 91-day T-bill at 6.6 percent, an average of Top 5 Money Market Funds at 10.1 percent, with the Cytonn Money Market Fund closing the week at 11.0 percent.

The Interbank Rate

Liquidity in the market remained favorable during the week, with the average interbank rate still at low levels despite rising slightly to 2.3 percent from 2.0 percent, recorded the previous week.

Commercial banks’ excess reserves came in at 14.8 billion shillings in relation to the 5.25 percent cash reserves requirement (CRR).

The average volumes traded in the interbank market however declined by 2.0 percent to 7.6 billion shillings from 7.8 billion shillings the previous week.