T-Bills End April In The Red, Close The Month At 59.4%

During the month of April, T-bills remained undersubscribed, with the overall subscription rate coming in at 59.4 percent, a decline from the 90.7 percent recorded in March 2022.

The decline in the subscription rate was partly attributable to the concurrent government bond issues during the month, with the higher 15 –year tenor bond FXD1/2022/15.

The sale of the bond closed on 19th April 2022, recording an oversubscription of 108.5 percent, as investors preferred the higher 13.9 percent yield on offer.

The overall subscription rates for the 91-day, 182-day and 364-day papers declined to 105.5, 46.7, and 53.6 percent, from 121.5, 76.2, and 92.8 percent recorded in March 2022.

The average yields on the 364-day, 182-day and 91-day papers increased by 2.5 bps, 17.9 bps and 12.3 bps to 9.7, 8.3 and 7.4 percent, respectively.

For the month of April, the government accepted a total of Kshs 56.8 billion out of the Kshs 57.0 billion worth of bids received, translating to a 99.7 percent acceptance rate.

During the week, T-bills were oversubscribed, with the overall subscription rate coming in at 117.8 percent, up from the 98.9 percent recorded the previous week.

The oversubscription is partly attributable to the rising yields on the government papers, pointing towards higher returns for investors.

The 91-day paper recorded the highest subscription rate, receiving bids worth Kshs 10.2 billion against the offered Kshs 4.0 billion, translating to a subscription rate of 254.6 percent, an increase from the 204.5 percent recorded the previous week partly attributable to the higher return on a risk-adjusted basis.

The subscription rate for the 364-day paper increased to 93.9 percent from 65.4 percent recorded the previous week, while that of the 182-day paper declined to 87.0 percent, from 90.2 percent recorded last week.

The yields on the government papers were on an upward trajectory, with the yields on the 364-day, 182-day and the 91-day papers increasing by 2.1 bps, 8.5 bps and 4.9 bps to 9.8, 8.5 and 7.5 percent, respectively.

The government accepted bids worth Kshs 28.2 billion, out of the Kshs 28.3 billion worth of bids received, translating to an acceptance rate of 99.6 billion.