T-Bills Sustain Oversubscription, 364-Day Paper Still Shining

During the week, T-bills remained oversubscribed, with the overall subscription rate coming in at 162.0 percent, up from 110.7 percent recorded the previous week.

The demand for the 364-day paper persisted, as it recorded the highest bids worth 24.1 billion shillings against the offered 10.0 billion shillings, translating to a subscription rate of 241.3 percent, an increase from the 222.6 percent recorded the previous week.

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Investors’ continued interest in the 364-day paper is mainly attributable to the attractive return of 9.3% from the paper which is higher than the rate for most bank placements.

The subscription rate for the 182-day paper increased to 101.1 percent, from 28.9 percent recorded the previous week, receiving bids worth 10.1 billion shillings against the 10.0 billion shillings offered.

The subscription rate for the 91-day paper also increased to 116.1 percent, from 35.7 percent recorded the previous week, with the paper receiving bids worth 4.6 billion shillings against the offered amounts of 4.0 billion shillings.

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

The yields on all three papers declined; with the 91-day, 182-day, and 364-day paper declining by 0.1 bps, 4.2 bps, and 8.1 bps, to 7.2, 8.0, and 9.3 percent, respectively.

The government continued to reject expensive bids, accepting 22.4 billion shillings out of the 38.9 billion shillings worth of bids received, translating to an acceptance rate of 57.5 percent.

In the money markets, 3-month bank placements ended the week at 7.9 percent (based on what we have been offered by various banks).

The yield on the 91-day T-bill declined marginally by 0.1 bps to 7.2 percent. The average yield of the Top 5 Money Market Funds declined to 10.0 percent, from the 10.1 percent recorded the previous week.

The yield on the Cytonn Money Market Fund remained unchanged at 10.6 percent, similar to what was recorded the previous week.

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