T-Bills End October In The Red But November Looks Promising

By Soko Directory Team / Published November 7, 2022 | 9:07 am

KEY POINTS

The overall subscription rates for the 91-day and 182-day papers declined to 324.4 and 61.7 percent from 362.0 and 85.7 percent, respectively, while that of the 364-day paper slightly increased to 29.0 percent from 24.7 percent recorded in September 2022.

KEY TAKEAWAYS

Investor’s preference for the shorter 91-day paper persisted, with the paper receiving bids worth 18.5 billion shillings against the offered 4.0 billion shillings, translating to a subscription rate of 463.8 percent, up from 299.8 percent recorded the previous week.

During the month of October, T-bills were undersubscribed, with the overall subscription rate declining to 91.9 percent, from 106.3 percent recorded in September 2022.

The performance of the T-Bills was partly attributable to tightened liquidity during the period with the average interbank rate increasing to 5.1 percent from 4.6 percent recorded in September.

The average yields on the government papers were on an upward trajectory during the month with the 364-day, 182-day, and 91-day papers increasing by 1.9 bps, 5.0 bps, and 13.7 bps to 9.9, 9.7, and 9.1 percent respectively.

For the month of October, the government continued to reject expensive bids, accepting a total of 92.8 billion shillings out of the 110.2 billion shillings worth of bids received, translating to an acceptance rate of 84.2 percent.

During the week, T-bills were oversubscribed, with the overall subscription rate coming in at 181.9 percent, an increase from the 75.8 percent recorded the previous week.

The increase in the subscription rate was partly attributable to the eased liquidity in the money market with the average interbank rate declining to 4.6 percent from 5.0 percent recorded the previous week.

Similarly, the subscription rates for the 364-day and 182-day papers increased to 167.6 and 83.4 percent, from 21.5 and 40.4 percent 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 14.4 bps, 1.3 bps, and 1.2 bps to 10.1, 9.7, and 9.1 percent, respectively.

The government rejected expensive bids, accepting a total of 39.5 billion shillings worth of bids out of the 43.7 billion shillings worth of bids received, translating to an acceptance rate of 90.4 percent.

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

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