T-Bill Subscription Hits The Roof For The First Time In Three Weeks

During the week, T-bills were oversubscribed for the first time in three weeks, with the overall subscription rate coming in at 199.7 percent, up from an undersubscription rate of 47.1 percent recorded the previous week.

Investors’ preference for the shorter 91-day paper persisted, with the paper receiving bids worth Kshs 41.8 bn against the offered 4.0 billion shillings, translating to an oversubscription rate of 1,044.6 percent higher than the 167.4 percent recorded the previous week.

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The subscription rate for the 364-day and 182-day papers increased to 9.0 and 52.5 percent respectively from 2.6 percent and 43.5 percent recorded the previous week.

The government accepted a total of 47.8 billion shillings worth of bids out of 47.9 billion shillings of bids received, translating to an acceptance rate of 99.7 percent.

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The yields on the government papers continued to rise, with the yields on the 364-day, 182-day, and 91-day papers increasing by 23.3 bps, 88.0 bps, and 42.5 bps to 13.3, 13.4, and 13.1 percent, respectively.

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So far in the current FY’2023/24, government securities totaling 228.0 billion shillings have been advertised, and bids amounting to Kshs 280.1 bn have been received, comprising Kshs 183.9 bn in treasury bills and 96.2 billion shillings in bonds, respectively.

The government has accepted bids worth Kshs 257.7 bn, of which 175.7 bn and 82.0 bn were treasury bills and bonds, respectively.

Total redemptions so far in FY’2023/24 equal 225.3 billion shillings, with treasury bills accounting for all redemptions. As a result, the government has a domestic borrowing surplus of 32.4 billion shillings in FY’2023/24.

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