T-Bill Subscription Still In The Red, Investors Rush For 364-Day Paper

By Soko Directory Team / Published February 8, 2021 | 8:15 am




KEY POINTS

The yields on 364-day and 182-day papers rose by 9.3 bps and 1.6 bps, to 8.7% and 7.6% while the 91-day paper declined by 2.4 bps to 6.9%


T-Bills

T-bills were undersubscribed last week but the overall subscription rate increased to 70.0 percent from 66.2 percent recorded the previous week.

The slight increase was attributed to the concurrent primary bond offer and the continued tightening of liquidity in the money markets.

The investors continued their preference on the 364-day paper which had the highest subscription rate increasing to 142.1 percent from 134.2 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 20.9 percent, from 19.7 percent recorded the previous week, while the 91-day paper declined marginally to 12.6 percent, from 12.7 percent recorded the previous week.

The yields on 364-day and 182-day papers rose by 9.3 bps and 1.6 bps, to 8.7 and 7.6 percent while the 91-day paper declined by 2.4 bps to 6.9 percent.

The government received bids worth 16.8 billion shillings, accepting only 14.9 billion shillings translating to an acceptance rate of 88.6 percent.

The Central Bank of Kenya re-opened two bonds, FXD1/2013/15 and FXD1/2012/20, with effective tenors of 7.1 years and 11.8 years, and coupons of 11.3 and 12.0 percent respectively.

The issue recorded an overall subscription rate of 83.7 percent, mainly attributable to the short bidding period and tightened liquidity in the market.

READ: T-Bill Subscription For 364-Day Paper Hits 115.9% In January

The government received bids worth 41.9 billion shillings, lower than the 50.0 billion shillings offered, and accepted only 32.1 billion shillings, translating to an acceptance rate of 76.7 percent.

The weighted average rate of accepted bids was 11.9 percent and 12.7 percent, for the FXD1/2013/15 and FXD1/2012/20, respectively.

For money markets, 3-month bank placements ended the week at 7.4 percent, while the yield on the 91-day T-bill declined by 2.4 bps to 6.9 percent.

The average yield of the Top 5 Money Market Funds remained unchanged at 10.0 percent from last week. The yield on the Cytonn Money Market increased marginally by 10.0 bps to 10.9 percent, from the 10.8 percent, recorded the previous week.

READT-Bill Subscription Improves But Still Under 100%





About Soko Directory Team

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

View other posts by Soko Directory Team


More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (260)
  • May 2021 (285)
  • June 2021 (274)
  • July 2021 (234)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (334)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (253)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (319)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (237)
  • June 2018 (178)
  • July 2018 (256)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (186)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950