T-Bills End The Week With Neck High, Records And Oversubscription

During the week, T-bills were oversubscribed, with the overall subscription rate coming in at 131.0 percent, up from 125.0 percent recorded the previous week.

The demand for the 364-day paper remained high, as it recorded the highest bids worth 25.3 billion shillings against the offered 10.0 billion shillings, translating to a subscription rate of 253.2 percent, an increase from the 245.4 percent the previous week.

The subscription rate for the 182-day paper increased to 42.6 percent, from 37.5 percent recorded the previous week, receiving bids worth 4.3 billion shillings against 10.0 billion shillings offered.

The subscription rate for the 91-day paper also increased to 46.5 percent, from 42.7 percent recorded the previous week, with the paper receiving bids worth 1.9 billion shillings against the intended 4.0 billion shillings.

The yields on the 91-day and 182-day papers increased to 7.2 and 8.0 percent, while the yields on the 364-day paper declined to 9.4 percent.

The government continued to reject expensive bids, accepting 66.2 percent of the bids received, amounting to 20.8 billion shillings, out of the 31.4 billion shillings worth of bids received.

In the Primary Bond Market, the two bonds reopened by the government for the month of May recorded an overall subscription rate of 142.0 percent.

Read More: T-Bill Subscription Improves But Still Under 100%

Investors preferred the longer-dated paper, FXD1/2021/25, with a tenor of 25 years, which received bids worth 31.0 billion shillings, against the 30.0 billion shillings offered amount which translated to a subscription rate of 103.4 percent.

On the other hand, FXD2/2019/15 received bids worth 11.6 billion shillings against the 30.0 billion shillings offered, translating to a subscription rate of 38.6 percent.

The average yields on the two bonds were 13.0 and 13.9 percent for FXD2/2019/15 and FXD1/2021/25, respectively.

The government continued rejecting expensive bids by accepting 20.3 billion shillings of the 42.5 billion shillings worth of bids received, translating to an acceptance rate of 47.6 percent.

Read More: T-Bills End The Week At 131.6% From 110.0% Previously

Get the full report on the T-Bills here.