T-Bills Hit 116.7% In Subscriptions, 6% Up From Last Week

During the week, T-bills were oversubscribed, with the overall subscription rate coming in at 116.7%, from the 110.0% recorded the previous week.

The oversubscription was partly attributable to the eased liquidity in the money market, with the average interbank rate decreasing to 5.0% from 5.3% recorded in the previous week.

Investor’s preference for the shorter 91-day paper persisted, with the paper receiving bids worth Kshs 10.2 bn against the offered Kshs 4.0 bn, translating to a subscription rate of 253.8% from 452.2% recorded the previous week.

The subscription rate for the 364-day and 182-day papers also increased to 39.2% and 139.5% from 14.3% and 68.8% respectively, 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 0.5 bps, 1.7 bps, and 2.2 bps to 9.9%, 9.7%, and 9.1%, respectively.

At the same time, during the week, the yields on Eurobonds were on an upward trajectory, an indication of rising risk concerns over the economy by investors on the back of persistent inflationary pressures.

The yield on the 12-year Eurobond issued in 2021 increased the most by 0.7% points to 13.2% from the 12.5% recorded in the previous week.

Liquidity in the money markets eased, with the average interbank rate declining to 5.0% from 5.3% recorded the previous week, partly attributable to government payments that offset tax remittances.

The average interbank volumes traded declined by 24.4% to Kshs 13.3 bn from Kshs 17.6 bn recorded the previous week.