T-Bills Jump Back To The Oversubscription Zone

T-bills were oversubscribed last week with the overall subscription rate coming in at 156.4 percent, up from the 96.6 percent recorded the previous week, partly attributable to the eased liquidity in the money market.

The 364-day paper recorded the highest subscription rate, receiving bids worth 19.4 billion shillings against the offered 10.0 billion shillings, translating to a subscription rate of 194.0 percent, an increase from the 112.0 percent recorded the previous week.

The subscription rate for the 182-day paper increased as well to 137.2 percent from 63.3 percent while that of the 91-day paper declined to 110.1 percent, from 141.3 percent recorded the previous week.

The yields on the government papers recorded mixed performance, with the yields on the 182-day and 364-day papers increasing by 4.0 bps and 3.0 bps to 8.1 and 9.5 percent, respectively, while the yield on the 91-day paper declined by 3.6 bps to 7.3 percent.

The government continued to reject expensive bids, accepting 31.1 billion shillings bids out of the 37.5 billion shillings worth of bids received, translating to an acceptance rate of 82.8 percent.

At the same time, during the week, the yields on Eurobonds recorded mixed performance, with yields on the 10-year bond issued in 2014 remaining unchanged at 4.4 percent as was recorded the previous week.

Yields on the 10-year and 30-year bonds issued in 2018, the 7-year and 12-year bonds issued in 2019, and the yield on the 12-year bond issued in 2021 all increased by 0.1 percentage points to 6.1%, 8.3%, 5.8%, 6.9%, and 6.8%, from 6.0%, 8.2%, 5.7%, 6.8%, and, 6.7%, respectively, recorded the previous week.

Read More: T-Bills Still Wobbled Last Week But Above The Previous Week

Source: Cytonn Report