T-Bills Remained In The Red In Q3 Of 2022 – Cytonn

During Q3’2022, T-bills remained undersubscribed with the overall subscription rate coming in at 90.8 percent up from 78.1 percent in Q2’2022.

The performance of the T-Bills was partly attributable to the tightened market liquidity, which saw the average interbank rate increase to 5.2 percent from 4.8 percent in Q2’2022.

The Overall subscription for the 91-day and 182-day increased to 304.9 percent and 64.9 percent from 127.6 percent and 58.1  percent in Q2’2022, respectively, while the 364-day declined to 31.1 percent from 78.3 percent recorded in Q2’2022.

The acceptance rate for the quarter declined to 87.0 percent from 91.9 percent in Q2’2022, with the government accepting a total of 246.4 billion shillings of the 283.3 billion shillings worth of bids received during the quarter.

The yields on the government papers were on an upward trajectory during the quarter, with the yields on the 364-day, 182-day, and 91-day papers increasing by 8.2 bps, 77.0 bps, and 91.9 bps to 9.9, 9.4, and 8.6 percent, respectively.

During the week, T-bills remained undersubscribed, with the overall subscription rate declining to 38.8 percent, from the 46.6 percent recorded the previous week.

The undersubscription was partly attributable to the tightened liquidity in the money market, with the average interbank rate increasing to 5.6 percent from 4.5 percent recorded in the previous week.

Investor’s preference for the shorter 91-day paper persisted, with the paper receiving bids worth 5.1 billion shillings against the offered 4.0 billion shillings, translating to a subscription rate of 128.2 percent up from 117.8 percent recorded the previous week.

The subscription rate for the 364-day paper also increased to 11.3 percent from 10.4 percent while that of the 182-day declined to 30.5 percent from 54.3 percent, recorded the previous week.

The yields on the government papers recorded mixed performance, with the yields on the 182-day and 91-day papers increasing by 0.6 bps and 0.1 bps to 9.6 and 9.0 percent, respectively, while the yield on the 364-day paper declined by 0.4 bps to 9.9 percent.

Related Content: T-Bills Dip As Investors Rush For Short-term Papers