July’s T-Bill Subscription Skyrocketed To 134.8 Percent

The month of July was good for T-Bills in Kenya with an oversubscription of 134.8 percent from 131.7 percent in June.

The subscription rate for the 91-day paper came in at 131.1 percent from 86.4 percent according to Cytonn’s latest monthly report.

The subscription for the 182-day paper stood at 64.0 percent at the end of the month, an increase from 33.0 percent in June.

The subscription rate for the 364-day paper closed the month of July at 207.0 percent, a drop from 317.3 percent in June.

The yields on the 91-day paper dropped by 0.1 percentage points to 6.6 percent with that of 182-day declining with the same points to 7.4 percent from 6.7 and 7.5 percent respectively.

Also Read:

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

The yields on the 364-day paper increased by 0.2 percentage points to 9.0 percent from 8?8 percent in June.

The acceptance rate for the month of July was at 95.6 percent, down from 99.3 percent in June.

The government of Kenya accepted 123.6 billion shillings in bids of the 129.4 billion shillings worth of bids received.

According to Cytonn, the Central Bank of Kenya (CBK) “remained disciplined in rejecting expensive bids in order to ensure stability in interest rates.”

Last week in focus

T-Bills kicked off the new month of July on a high note, registering a subscription rate of 113.5 percent from 108.4 percent the previous week.

Favorable liquidity in the money markets, as well as government payments during the week, played a role in the T-Bill subscription.

Last week, the yields on the 91-day paper increased by 0.1 percentage points to 6.6 percent from 6.5 percent the previous week.

The yield on the 364-day paper rose by 0.2 percentage points to 9.0 percent from 8.8 percent the previous week.

The 182-day paper remained unchanged at 7.4 percent just as the previous week.

The acceptance rate declined to 89.1 percent from 96.1 percent the previous week.

The government of Kenya, last week, accepted 24.3 billion shillings of the 27.2 billion shillings worth of bids received.

The 91-day T-Bill is currently trading at a yield of 6.6 percent. The trading is below the 5-year average of 8.7 percent.

The lower yield on the 91-day paper during the week was mainly attributed to the lower interest rate environment that has persisted since the passing of the interest rate capping law.