The T-Bills have remained Under-subscribed for the second week this month according to a weekly report released by Cytonn Investments.
Last week saw the subscription of T-Bills coming in at 78.6 percent from 62.6 percent recorded the previous week.
NOTE: T-Bills are said to be Under-subscribed when the subscription rate is below 100 percent. Any subscription above 100 percent is said to be an “oversubscription”.
According to Cytonn Investments, the under subscription of the T-Bills during the week was partly attributed to the continued period of tightened liquidity in the money markets.
The tightened liquidity has been brought about by the tax payments with Pay as You Earn (PAYE) having been due as at the start of the week of 9th September 2019.
The liquidity has also been affected by the commercial banks trading continuously in the interbank market in order to meet their CRR requirements for the cycle ending 14th of August 2019.
During the week, the yield on the 91-day paper declined by 6.0 bps to 6.3 percent while the yields in the 182-day and 365-day papers rose by 14.8 and 6.2 bps to 7.1 and 9.6 percent respectively.
The acceptance rate for the T-Bills declined to 77.3 percent from 99.9 percent recorded the previous week.
The government of Kenya accepted 14.6 billion shillings out of the 18.6 billion shillings worth of bids received.
The Demonetization Deadline
Kenyans have until 30th of this month to exchange their old 1000-shilling notes with the new generational notes.
According to the Central Bank of Kenya, after the 30th of this month of September, all old 1000-shilling notes in the hands of Kenyans will be “mere paper.”
Kenyans have been advised to take the notes to any nearest bank or deposit them with an M-Pesa agent.
Kenyans from various parts of the country have reported of their current old 1000-nites being rejected by business people with the only savior for them being banks.