T-bills remained undersubscribed, with the subscription rate coming in at 52.3 percent, up from 40.4 percent the previous despite high liquidity in the money market.
The markets remained liquid supported by government payments with the average interbank rate ending the week at 3.0 percent, lower than the 2019 average rate of 4.3 percent.
The highest subscription rate was on the 91-day paper, which came in 113.3 percent, up from 65.5 percent recorded the previous week.
The subscription for the 182-day paper also increased to 61.0 percent from 8.8 percent recorded the previous week, while that of the 364-day paper decreased to 19.3 percent from 61.8 percent recorded the previous week.
The acceptance rate reduced to 85.4 percent from 100.0 percent the previous week, while the yields on the 91-day, 182-day, and 364-day papers remained unchanged at 6.3, 6.6, and 7.5 percent respectively.
In the money markets, 3-month bank placements ended the week at 7.2 percent (based on what we have been offered by various banks).
The yields on the 91-day T-bill remained unchanged at 6.3 percent. The average yield of Top 5 Money Market Funds declined marginally to 10.0 percent from 10.1 percent previously.
The yield on the Cytonn Money Market also declined marginally to close at 10.6 percent, from 10.7 percent recorded the previous week.
The money markets remained liquid during the week, despite the average interbank rate increasing to 3.0 percent, from 2.6 percent recorded the previous week, mainly supported by government payments and maturing TADS of Kshs 81.1 bn.
TADs are used when the securities held by the CBK for Repo purposes are exhausted or when CBK considers it desirable to offer longer tenor options.
The average interbank volumes increased by 23.0 percent to 16.9 billion shillings from 13.8 billion shillings recorded the previous week. The commercial banks’ excess reserves came in at 28.7 billion shillings.
According to Reuters, the yield on the 10-year Eurobond issued in June 2014 declined marginally to close the week at 6.0 percent, down from the 6.1 percent recorded last week.