T-Bills Jump To Oversubscription After Weeks In The Red

Last week, T-bills recorded an oversubscription, with the overall subscription rate coming in at 131.1 percent, an increase from the 66.0 percent recorded the previous week.

The 364-day paper recorded the highest subscription rate, receiving bids worth 19.2 billion shillings against the offered 10.0 billion shillings, translating to a subscription rate of 192.4 percent, an increase from the 57.9 percent recorded the previous week.

The increased interest in the 364-day paper is partly attributable to investors’ preference for holding onto the longer-dated paper since it now offers a better risk-adjusted return.

The subscription rate for the 182-day and 91-day papers increased to 87.9 and 85.9 percent, from 74.2and 66.0 percent, respectively, recorded the previous week.

The yields on the 91-day, 182-day, and 364-day papers increased by 5.7 bps, 6.8 bps, and 13.5 bps, to 7.1, 7.6, and 8.6 percent, respectively.

The government accepted all the 31.5 billion shillings worth of bids received, translating to an acceptance rate of 100.0 percent.

At the same time, during the week, the yields on Eurobonds recorded mixed performance, with the 10-year bond issued in 2014 and the 30-year bond issued in 2018 increasing by 0.2 percentage points and 0.1 percentage points to 3.8 and 7.9 percent, respectively.

On the other hand, the yields on the 10-year bond issued in 2018, the 7-year issued in 2019, and the 12-year bonds issued in 2019 and 2021 remained relatively unchanged at 5.8, 5.4, 6.8, and 6.6 percent respectively.