Skip to content
Headlines

T-Bill Subscription Still Below 100% As GoK Receives Ksh 21.7 Bn In Bids

BY Soko Directory Team · February 15, 2021 06:02 am

KEY POINTS

The yields on 364-day, 182-day, and 91-day papers rose by 10.8 bps, 5.0 bps, and 3.2 bps to 8.8, 7.7, and 6.9 percent, respectively.

T-bills remained undersubscribed last week but the overall subscription rate increased to 90.6 percent, from 70.0 percent recorded the previous week.

Investors’ preference remained on the 364-day paper which had the highest subscription rate increasing to 160.8 percent, from 142.1 percent recorded the previous week.

This is mainly attributable to investor preference on medium-term papers (1-2 years) as they now believe that the pandemic has been contained but are still worried about the possible effects of the current rising political temperatures preceding the elections in August 2022.

The subscription for the 182-day paper also increased to 47.0 percent, from 20.9 percent recorded the previous week, while the 91-day paper increased to 23.9 percent from 12.6 percent recorded the previous week.

The yields on 364-day, 182-day, and 91-day papers rose by 10.8 bps, 5.0 bps, and 3.2 bps to 8.8, 7.7, and 6.9 percent, respectively. The government received bids worth 21.7 billion shillings, accepting only 19.2 billion shillings, translating to an acceptance rate of 88.5 percent.

The Central Bank of Kenya re-opened two bonds on tap sale, FXD1/2013/15 and FXD1/2012/20, with effective tenors of 7.1 years and 11.8 years, and coupons of 11.3 percent and 12.0 percent, respectively as the initial reopening had recorded an undersubscription with total subscription having come in at 83.7 percent.

The bonds are currently trading in the secondary market at a rate of 11.8 percent for FXD1/2013/15 and 12.6 percent for FXD1/2012/20. The period of sale runs from Tuesday, 9th February 2021 to Wednesday, 17th February 2021 or upon attainment of quantum, whichever comes first.

In the money markets, 3-month bank placements ended the week at 7.4 percent (based on what we have been offered by various banks), while the yield on the 91-day T-bill rose by 3.2 bps to 6.9 percent.

The average yield of the Top 5 Money Market Funds declined by 0.1 percentage points to 9.9 percent from the 10.0 percent recorded last week. The yield on the Cytonn Money Market declined by 30.0 bps to 10.6 percent, from the 10.9 percent, recorded the previous week.

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

Trending Stories
Government and Policy Ministry Of Education Announces New School Calendar For 2025 Getrude Mathayo
Market News Kenya Has The Highest Fuel Prices On The African Continent Thanks To An Archaic & Repugnant Tax Regulation Environment Steve Biko Wafula
Entrepreneur's Corner The Brutal Truth: Why Genuine Business Isn’t For The Weak Steve Biko Wafula
Technology Meta-Sponsored Vambo AI & Futurize Hackathon Drives Innovation At Kenya Innovation Week 2024 Soko Directory Team
Lifestyle I&M Bank Launches Milele Rewards, To Let Customers Earn Points Through Their Cards Soko Directory Team
Related Articles
Headlines Are The SACCOS The Infinite Money Glitch Of Kenya? Soko Directory Team
Government and Policy TSC Revises Registration Requirements For Teachers Getrude Mathayo
Headlines Jubilee Health Insurance’s “Always With You” Campaign Wins MSK Award Soko Directory Team
Government and Policy Kenya Is Struggling With Debt As Modest Revenue Is Collected With Limited Development Investment Steve Biko Wafula
Entrepreneur's Corner The Greatest Skill Everyone Should Master Is The Skill Of Knowing How To Manage Money Soko Directory Team
Explore Soko Directory
Banking Blogging Commodity Watch Did you know Entertainment Entrepreneur's Corner Feature Government and Policy Headlines Investment Lifestyle Market News Money Opinion Press Releases Stock Watch Technology
Soko Directory Archives