T-Bills Crossed The 150% Mark During The Month Of February

By Juma / Published March 6, 2023 | 1:43 pm

KEY POINTS

The average yields on the government papers were on an upward trajectory, with the average yields on the 364-day, 182-day, and 91-day papers increasing by 17.3 bps, 17.1 bps, and 15.8 bps to 10.6, 10.1, and 9.6 percent from 10.4, 9.9 and 9.5 percent, respectively, recorded in January 2023.

KEY TAKEAWAYS

Investor’s preference for the shorter 91-day paper persisted as they sought to avoid duration risk, with the paper receiving bids worth 22.2 billion shillings against the offered 4.0 billion shillings, translating to an oversubscription rate of 555.7 percent, higher than 284.1 percent recorded the previous week.

During the month of February 2023, T-bills were oversubscribed, with the overall average subscription rate coming in at 167.1 percent, an increase from 126.5 percent recorded in the month of January 2023.

The average subscription rate for the 364-day, 182-day, and 91-day papers increased to 62.2, 105.3, and 583.7 percent from 42.5, 92.3, and 422.1 percent, recorded in January 2023.

For the month of February, the government rejected expensive bids, accepting a total of 136.6 billion shillings of the 160.4 billion shillings worth of bids received, translating to an acceptance rate of 85.2 percent.

During the week, T-bills were oversubscribed, with the overall subscription rate coming in at 136.2 percent, up from the 81.0 percent recorded the previous week.

Related Content: T-Bills Still Above Waters As January Drags On

The subscription rates for the 364-day and 182-day papers also increased to 44.5 and 60.2 percent from 36.7 and 44.0 percent, respectively, recorded the previous week.

Key to note, the government rejected expensive bids, accepting bids worth 23.8 billion shillings out of the 32.7 billion shillings total bids received, translating to an acceptance rate of 72.7 percent.

The yields on the government papers were on an upward trajectory, with the yields on the 364-day paper, 182-day, and 91-day papers increasing by 1.4 bps, 4.8 bps, and 4.3 bps to 10.7, 10.2, and 9.7 percent, respectively.

Related Content: 91-Day Paper Demand Retains T-Bills Above 120%

The February 2023 bonds were undersubscribed, with the overall subscription rate coming in at 53.2 percent down from 99.4 percent, recorded in January 2023.

The re-opened bond FXD1/2017/10 and the newly issued bond FXD1/2023/10 received bids worth 19.5 billion shillings against the offered 50.0 billion shillings, translating to an undersubscription rate of 38.9 percent with the government accepting bids worth 16.7 billion shillings translating to an acceptance rate of 86.1 percent.

About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

View other posts by Juma