T-Bills Jump To Above 100% From A Dismal Of 69.3%

T-bills recorded an oversubscription, with the overall subscription rate coming in at 108.6 percent last week, up from the 69.3 percent recorded the previous week.

The 91-day paper recorded the highest subscription rate, receiving bids worth 8.4 billion shillings against the offered 4.0 billion shillings, translating to a subscription rate of 209.9 percent, an increase from the 99.8 percent recorded the previous week.

The increased interest in the 91-day paper is partly attributable to the paper’s higher return on a risk-adjusted basis.

The subscription rate for the 364-day and 182-day papers increased to 92.0 and 84.8 percent, from 74.3 and 52.0 percent, respectively, recorded the previous week.

The yields on the 91-day, 182-day, and 364-day papers increased by 4.4 bps, 6.4 bps, and 9.2 bps, to 7.1, 7.8, and 8.9 percent, respectively.

The government accepted 23.2 billion shillings of the 26.1 billion shillings worth of bids received, translating to an acceptance rate of 89.2 percent. 

At the same time, during the week, liquidity in the money markets tightened, with the average interbank rate increasing by 0.5 percent points to 5.2 from 4.7 percent recorded the previous week, partly attributable to tax remittances which offset Government payments.

The average interbank volumes traded increased by 11.3 percent to 11.0 billion shillings, from 9.9 billion shillings recorded the previous week.

During the week, the yields on Eurobonds recorded mixed performance, with the 30-year bond issued in 2018 increasing by 0.1 percentage points to 7.9 percent, from 7.8 percent recorded the previous week

The yields on the 12-year bond issued in 2021 declined by 0.1 percent to 6.4 percent, from 6.5 percent recorded the previous week.

Yields on the 10-year bond issued in 2014, a 10-year bond issued in 2018, a 7-year bond issued in 2019 and 12-year bond issued in 2019 remained unchanged at 3.8%, 5.6%, 5.4%, and 6.6%, respectively