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T-Bills Still Having A Field Day 3 Weeks Running

BY Soko Directory Team · June 21, 2021 08:06 am

KEY POINTS

The subscription rate for the 364-day paper declined to 172.3 percent, from 243.0 percent recorded the previous week, receiving bids worth 17.2 billion shillings against the offered amounts of 10.0 billion shillings.

Last week, T-bills remained oversubscribed, with the overall subscription rate coming in at 152.9 percent, a decline from the 181.8 percent recorded the previous week.

The 91-day paper recorded the highest subscription rate, receiving bids worth 8.2 billion shillings against the offered 4.0 billion shillings, translating to a subscription rate of 205.0 percent, a decline from the 209.7 percent recorded the previous week.

The subscription rate for the 364-day paper declined to 172.3 percent, from 243.0 percent recorded the previous week, receiving bids worth 17.2 billion shillings against the offered amounts of 10.0 billion shillings.

The subscription rate for the 182-day paper increased to 112.5 percent, from 109.3 percent recorded the previous week, receiving bids worth 11.3 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 10.4 bps, 19.5 bps, and 54.3 bps, to 7.0, 7.5, and 8.1 percent respectively.

Read More: T-Bills Sustain Oversubscription, 364-Day Paper Still Shining

The government continued to reject expensive bids, accepting 17.3 billion shillings out of the 36.7 billion shillings worth of bids received, translating to an acceptance rate of 47.1 percent.

In the Primary Bond Market, there was an oversubscription for this month’s bond offers, with the overall subscription rate coming in at 216.4 percent, having received 64.9 billion shillings compared to the 30.0 billion shillings on offer.

The government continued to reject expensive bids, accepting only 19.7 billion shillings of the 64.9 billion shillings received, translating to a 30.3 percent acceptance rate.

The Central Bank of Kenya had re-opened 2 bonds, FXD1/2019/20 and FXD1/2012/20 with effective tenors of 17.9 years and 11.4 years, and coupons of 12.9 and 12.0 percent, respectively, in a bid to raise 30.0 billion shillings for budgetary support.

Investors preferred the longer-tenure issue i.e. FXD1/2019/20, which received bids worth 41.0 billion shillings, representing 63.2 percent of the total bids received.

The weighted average rate of accepted bids for the two bonds came in at 13.3 percent and 12.5 percent, for FXD1/2019/20 and FXD1/2012/20, respectively.

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