T-bills remained undersubscribed, with the overall subscription rate coming in at 65.7 percent, down from 95.2 percent recorded the previous week.
The undersubscription was partly attributable to investors shifting their focus to the December bond issue, which was oversubscribed by 102.9 percent.
The 91-day paper recorded the highest subscription rate, receiving bids worth 5.1 billion shillings against the offered 4.0 billion shillings, translating to a subscription rate of 126.8 percent, a decline from the 217.3 percent recorded the previous week.
The subscription rate for the 364-day paper declined as well to 51.7 percent, from 89.0 percent recorded the previous week, while the subscription rate for the 182-day paper increased to 55.2 percent, from 52.5 percent recorded the previous week.
The yields on the 91-day, 182-day, and 364-day papers increased by 4.8 bps, 13.0 bps, and 7.5 bps, to 7.3, 8.0, and 9.1 percent, respectively.
The government continued to reject expensive bids, accepting 11.9 billion shillings of the 15.8 billion shillings worth of bids received, translating to an acceptance rate of 75.6 percent.
In the Primary Bond Market, the government re-opened two bonds namely; FXD4/2019/10 and FXD1/2018/20 for the month of December.
The bonds recorded an oversubscription of 102.9 percent, driven by the ample liquidity in the money market coupled with the bonds’ attractive yields of 12.6 and 13.4 percent, respectively.
The government sought to raise Kshs 40.0 bn for budgetary support, received bids worth 41.2 billion shillings, and accepted bids worth 37.8 billion shillings, translating to a 91.9 percent acceptance rate.
Investors subscribed to the bonds in relatively equal measure, with the longer-tenure issue, i.e. FXD1/2018/20, receiving bids worth 20.9 billion shillings, representing 50.8 percent of the total bids received while FXD4/2019/10 received bids worth 20.3 bn, representing 49.2 percent of the total bids received.
The coupons for the two bonds were 12.3 percent and 13.2 percent.