T-Bills Oversubscribed Last Week, But Lower Than Previous Week

During the week, T-bills remained oversubscribed, with the overall subscription rate coming in at 105.6 percent, a decline from the 152.9 percent recorded the previous week.

The 91-day paper recorded the highest subscription rate, receiving bids worth 10.7 billion shillings against the offered 4.0 billion shillings, translating to a subscription rate of 267.7 percent, an increase from the 205.0 percent recorded the previous week.

The oversubscription of the 91-day paper is partly attributable to the higher risk-adjusted return offered by the paper given the decline in the rates of the other papers.

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The subscription rate for the 364-day paper declined to 90.4 percent, from 172.3 percent recorded the previous week, receiving bids worth 9.0 billion shillings against the offered amounts of 10.0 billion shillings

The subscription rate for the 182-day paper declined to 56.0 percent, from 112.5 percent recorded the previous week, receiving bids worth 5.6 billion shillings against the offered amounts of 10.0 billion shillings.

The yields on all three papers declined; with the 91-day, 182-day, and 364-day paper declining by 14.0 bps, 21.9 bps, and 37.6 bps, to 6.9, 7.3, and 7.7 percent, respectively.

The government continued to reject expensive bids, accepting Kshs 16.6 bn out of the 25.3 billion shillings worth of bids received, translating to an acceptance rate of 65.5 percent.

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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 by 14.0 bps to 6.9 PERCENT. The average yield of the Top 5 Money Market Funds increased to 10.0 percent, from the 9.8 percent recorded the previous week.

The yield on the Cytonn Money Market Fund increased to 10.6 percent, from the 10.3 percent recorded last week.

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What will next week be like?