T-Bills Still Floating In The Red, Ends The Month Below 100%

By Soko Directory Team / Published June 6, 2022 | 9:04 am

KEY POINTS

The subscription rate for the 182-day paper also increased to 72.7 percent, from 28.5 percent, while that of the 364-day paper declined to 50.3 percent from 97.2 percent recorded the previous week.

KEY TAKEAWAYS

The overall subscription rates for the 91-day, 182-day, and 364-day papers increased to 133.4, 66.9, and 101.0 percent, from 105.5, 46.7, and 53.6 percent, respectively, recorded in April 2022.

The average yields on the 364-day, 182-day, and 91-day papers increased by 10.3 bps, 42.3 bps, and 26.5 bps to 9.9%, 8.7, and 7.7 percent, respectively.

T-Bill Performance In May

During the month of May, T-bills remained undersubscribed, with the overall subscription rate coming in at 92.2 percent, up from the 59.4 percent recorded in April 2022.

The increase in the subscription rate was partly attributable to the increased yields and partly due to the eased liquidity in the money market with the average interbank rate declining to 4.6 percent, from 4.7 percent recorded in April 2022.

The overall subscription rates for the 91-day, 182-day, and 364-day papers increased to 133.4, 66.9, and 101.0 percent, from 105.5, 46.7, and 53.6 percent, respectively, recorded in April 2022.

The average yields on the 364-day, 182-day, and 91-day papers increased by 10.3 bps, 42.3 bps, and 26.5 bps to 9.9%, 8.7, and 7.7 percent, respectively.

For the month of May, the government accepted a total of 103.5 billion shillings out of the 110.6 billion shillings worth of bids received, translating to a 93.5 percent acceptance rate.

T-Bill Performance Last Week

During the week, T-bills remained undersubscribed with the overall subscription rate coming in at 86.3 percent, up from the 54.4 percent recorded the previous week.

The undersubscription was partly attributable to the tightened liquidity in the money market with the average interbank rates increasing to 4.8 percent, from the 4.6 percent recorded the previous week.

The highest subscription rate was in the 91-day paper which came in at 210.1 percent, up from the 12.4 percent recorded the previous week, partly attributable to the high returns on a risk-adjusted basis.

The subscription rate for the 182-day paper also increased to 72.7 percent, from 28.5 percent, while that of the 364-day paper declined to 50.3 percent from 97.2 percent recorded the previous week.

The yields on the government papers were on an upward trajectory with the yields on the 364-day, 182-day, and 91-day papers increasing by 5.4 bps, 7.3 bps, and 6.7 bps to 9.9, 9.0, and 7.8 percent, respectively.

In the primary bond market, the government released the auction results for the two bonds, FXD1/2022/10 and FXD1/2021/25, that was issued for the month of May highlighting that the bonds recorded an undersubscription of 71.9 percent.

As such, the government issued the bonds on tap-sale seeking to raise 10.0 billion shillings. The bonds were oversubscribed, receiving bids worth 17.0 billion shillings against the offered 10.0 billion shillings, translating to a subscription rate of 170.1 percent.

The average tenor for the May bonds came in at 14.7 years while that of April stood at 9.0 years. The weighted average rate of accepted bids for the May bonds was 13.7 percent, 0.8 percentage points higher than the 12.9 percent average rate for the April bonds.

Related Content: T-Bills Dip Further To End The Week At 54.4%

About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team