T-Bills End The Week 181.8%, Second Week Above Waters

Last week, T-bills remained oversubscribed, with the overall subscription rate coming in at 181.8 percent, an increase from the 162.5 percent recorded the previous week.

The demand for the 364-day paper persisted, as it recorded the highest bids worth 24.3 billion shillings against the offered 10.0 billion shillings, translating to a subscription rate of 243.0 percent, a decline from the 276.3 percent recorded the previous week.

The continued interest in the 364-day paper is mainly attributable to investors rushing to lock in the paper’s attractive return of 8.6 percent given that the rates have been declining over the past few weeks.

The subscription rate for the 182-day paper increased to 109.3 percent, from 100.0 percent recorded the previous week, receiving bids worth 10.9 billion shillings against the offered amounts of 10.0 billion shillings.

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

The subscription rate for the 91-day paper increased to 209.7 percent, from 34.3 percent recorded the previous week, with the paper receiving bids worth 8.4 billion shillings against the offered amounts of 4.0 billion shillings.

The yields on all three papers declined; with the 91-day, 182-day, and 364-day paper declining by 3.3 bps, 8.7 bps, and 32.5 bps, to 7.1, 7.7, and 8.6 percent.

The government continued to reject expensive bids, accepting 18.5 billion shillings out of the 43.6 billion shillings worth of bids received, translating to an acceptance rate of 42.4 percent.

Read More: T-Bills Remain Above 100 Percent As May Melts Away

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), while the yield on the 91-day T-bill declined by 3.3 bps to 7.1 percent.

The average yield of the Top 5 Money Market Funds declined to 9.9 percent from the 10.0 percent recorded the previous week. The yield on the Cytonn Money Market Fund remained unchanged at 10.4 percent during the week.

Get the full breakdown from this week’s Cytonn Report here.