T-Bills Remained Under The Table In First Quarter Of 2021

By Soko Directory Team / Published April 5, 2021 | 9:13 am




KEY POINTS

Overall subscriptions for the 91-day, 182-day, and 364-day papers came in at 69.4, 54.6, and 139.8 percent in Q1’2021, from 116.4, 51.5, and 100.5 percent in Q4’2020.


market Selling markets

During the first quarter of 2021, T-bills were undersubscribed, with the overall subscription rate coming in at 94.1 percent, up from 84.7 percent in Q4’2020.

The undersubscription was partly attributable to a slight improvement in the liquidity in the market during the quarter, which saw the average interbank rate decline to 5.4 percent, from 6.0 percent in Q4’2020, supported by government payments.

Overall subscriptions for the 91-day, 182-day, and 364-day papers came in at 69.4, 54.6, and 139.8 percent in Q1’2021, from 116.4, 51.5, and 100.5 percent in Q4’2020, with investors’ participation remaining skewed towards the longer 364-day paper.

The yields on all the papers increased with the 364-day, 182-day, and the 91-day T-bills to 9.3, 7.9, and 7.1 percent from 8.3, 7.7, and 6.9 percent respectively recorded at the end of Q4’2020.

The acceptance rate for the quarter declined to 92.6 percent from 94.2 percent in Q4’2020, with the government accepting a total of 264.6 billion shillings of the 287.1 billion shillings worth of bids received during the quarter.

During the week, T-bills remained undersubscribed, with the overall subscription rate coming in at 29.9 percent, a decline from the undersubscription of 82.9 percent recorded last week.

Read More: T-Bills End October In The Red But Slightly Above September

The undersubscription was partly attributable due to the lower liquidity in the market and renewed fears by investors as they adopt a wait and see attitude, after the new government restrictions following a spike in the number of COVID-19.

Investors’ continued interest in the 364-day paper saw it record the highest subscription rate at 44.1 percent, a decrease from 166.0 percent recorded the previous week, as the paper has an attractive rate of 9.3 percent, which is higher than the rate for most bank placements.

The subscription rate for the 91-day and 182-day papers also declined to 50.5 and 7.6 percent, from 82.6 and 30.7 percent, respectively.

Yields on the 364-day and 182-day papers rose by 4.9 bps and 2.0 bps to 9.3 and 7.9 percent, respectively, while the rate on the 91-day paper declined by 0.2 bps to 7.1 percent.

The increase in the yields can be attributable to investors continuing to demand a premium for the elevated market risks following the increase in the number of COVID-19 infections.

The government continued to reject expensive bids by accepting 7.16 billion shillings of the 7.19 billion shillings bids received, translating to an acceptance rate of 99.6 percent.





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 (78)
  • 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