During Q1’2023, T-bills were oversubscribed, with the overall subscription rate coming in at 135.8%, up from 108.5% in Q4’2022.
Investor’s preference for the shorter 91-day paper persisted as they sought to avoid duration risk, with the paper receiving bids worth Kshs 217.8 bn against the offered Kshs 48.0 bn, translating to an oversubscription rate of 453.5%, higher than 364.9% recorded the previous quarter.
Overall subscriptions for the 182-day and 364-day papers increased to 95.1% and 49.5% from 65.9% and 48.5% in Q4’2022, respectively.
The yields on all the papers were on an upward trajectory with the average yields on the 364-day, 182-day, and 91-day papers increasing by 48.3 bps, 34.2 bps, and 41.8 bps to 10.6%, 10.1%, and 9.6%, from 10.1%, 9.7% and 9.2%, respectively, recorded in Q4’2022.
The government also issued one new Treasury bond and one infrastructure bond, re-opened three bonds, and offered five of them on tap sale, seeking to raise Kshs 190.0 bn. The bonds were generally undersubscribed, receiving bids worth Kshs 164.1 bn against the offered Kshs 190.0 bn, translating to a subscription rate of 86.4%;
During the week, T-bills were undersubscribed, with the overall subscription rate coming in at 34.4%, a continued decline from the 49.2% recorded the previous week.
Investor’s preference for the shorter 91-day paper persisted as they sought to avoid duration risk, with the paper receiving bids worth Kshs 2.9 bn against the offered Kshs 4.0 bn, translating to an undersubscription rate of 72.6%, significantly lower than the 179.4% recorded the previous week.
Notably, the 182-day and 364-day papers recorded under subscriptions of 35.5% and 18.1% from an undersubscription rate of 87.7% and 43.7%, respectively, recorded the previous week.
The government accepted bids worth Kshs 8.0 bn and rejected Kshs 0.3 bn out of the total Kshs 8.3 bn bids received, translating to an acceptance rate of 97.2%.
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 1.3 bps, 5.5 bps, and 7.8 bps to 10.8%, 10.4%, and 9.9%, respectively.
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