T-Bills Still In The Red, Elections To Blame?

By Soko Directory Team / Published June 13, 2022 | 9:27 am

KEY TAKEAWAYS

The subscription rate for the 182-day paper also decreased to 40.0, from 72.7 percent, while that of the 364-day paper increased to 74.6 percent from 50.3 percent recorded the previous week.

During the week, T-bills remained undersubscribed with the overall subscription rate coming in at 61.3 percent, down from 86.3 percent recorded the previous week partly attributable to the concurrent bond issue which recorded an oversubscription of 101.8 percent.

The highest subscription rate in the 91-day paper decreased to 81.1 percent, from 210.1 percent recorded the previous week.

The subscription rate for the 182-day paper also decreased to 40.0, from 72.7 percent, while that of the 364-day paper increased to 74.6 percent from 50.3 percent recorded the previous week.

The yields on the 364-day, 182-day, and 91-day papers increased by 1.7 bps, 6.3 bps, and 5.5 bps to 10.0, 9.0, and 7.9 percent, respectively.

The government accepted 14.0 billion shillings worth of bids out of 14.7 billion shillings received, translating to an acceptance rate of 95.4 percent.

In the primary bond market, the government released the auction results for the newly issued infrastructure bond, IFB1/2022/18, for the month of June.

The bond recorded an oversubscription of 101.8 percent, partly attributable to the relatively ample liquidity in the money market during the period of the issue coupled with the attractive tax-free nature of the bond and the high coupon rate of 13.7 percent.

The government sought to raise Kshs 75.0 bn for funding infrastructural projects, received bids worth 76.4 billion shillings, and accepted bids worth 73.8 billion shillings, translating to a 96.6 percent acceptance rate.

The bond had a coupon rate and a market-weighted average rate of 13.7 and 13.8 percent, respectively.

During the week, liquidity in the money markets remained stable, with the average interbank rate remaining relatively unchanged at 4.8 percent, as recorded the previous week. The average interbank volumes traded increased by 38.1 percent to 27.9 billion shillings from 20.2 billion shillings recorded the previous week.

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