T-Bills Still Struggling As Month Of September Snails On

T-bills remained undersubscribed during the week with the overall subscription rate coming in at 54.6 percent, down from the 72.6 percent recorded the previous week.

The 91-day paper recorded the highest subscription rate, receiving bids worth 3.3 billion shillings against the offered 4.0 billion shillings, translating to a subscription rate of 83.8 percent, a decrease from the 172.5 percent recorded the previous week.

The subscription rate for the 182-day paper declined to 68.0 percent, from 77.0 percent, while that of the 364-day paper increased slightly to 29.5 percent, from the 28.3 percent recorded the previous week.

The yields on the 91-day and 364-day papers increased by 8.9 bps and 6.8 bps to 6.9 percent and 7.8 percent, respectively, while the yields on the 182-day paper declined by 0.3 bps to 7.3 percent.

The government accepted all the 13.1 billion shillings worth of bids received, translating to an acceptance rate of 100.0 percent.

Yields On Eurobonds

During the week, the yields on Eurobonds recorded mixed performance, with the yields on the 7-year bond issued in 2019 increasing by 0.1 percentage points to 4.8 percent.

Yields on the 10-year bond issued in 2018, a 30-year bond issued in 2018, a 12-year bond issued in 2019, and a 12-year bond issued in 2021 remained unchanged at 5.0, 7.2, 6.2, and 6.1 percent, respectively.

Liquidity

During the week, liquidity in the money markets tightened, with the average interbank rate increasing by 0.5 percent points to 4.1 percent, from 3.6 percent recorded the previous week.

This was partly attributable to the banks trading cautiously in the interbank market in order to meet their CRR requirements for the cycle ending 14^th September.

The average interbank volumes increased by 21.6% to Kshs 17.2 bn, from Kshs 13.7 bn recorded the previous week.

Rates

Rates in the fixed income market have remained relatively stable due to the sufficient levels of liquidity in the money market.

The government is 76.9 percent ahead of its prorated borrowing target of 152.0 billion shillings having borrowed 268.9 billion shillings of the 658.5 billion shillings borrowing for the FY’2021/2022.