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T-Bill Subscription Ups 161% As Investors Go For Shorter Papers

BY Soko Directory Team · September 11, 2023 11:09 am

KEY POINTS

The subscription rate for the 364-day and 182-day papers increased to 27.8 and 12.3 percent, respectively, from 6.2 percent and 9.6 percent recorded the previous week.

During the week, T-bills were oversubscribed for the first time in three weeks, with the overall subscription rate coming in at 161.8 percent, compared to the 96.6 percent recorded the previous week.

Investors’ preference for the shorter 91-day paper persisted, with the paper receiving bids worth 34.8 billion shillings against the offered 4.0 billion shillings, translating to an oversubscription rate of 870.8 percent, higher than the subscription rate of 539.8 percent recorded the previous week.

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The subscription rate for the 364-day and 182-day papers increased to 27.8 and 12.3 percent, respectively, from 6.2 percent and 9.6 percent recorded the previous week.

The government accepted a total of 38.77 billion shillings worth of bids out of 38.83 billion shillings of bids received, translating to an acceptance rate of 99.8 percent.

The yields on the government papers continued to rise, with the yields on the 364-day, 182-day, and 91-day papers increasing by 109.5 bps, 43.0 bps, and 24.9 bps to 14.9, 14.4, and 14.2 percent respectively.

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So far in the current FY’2023/24, government securities totaling 385.0 billion shillings have been advertised. The government has accepted bids worth 426.1 billion shillings, of which 301.5 billion and 124.6 billion were treasury bills and bonds, respectively.

Total redemptions so far in FY’2023/24 equal 361.3 billion shillings, with treasury bills accounting for all redemptions. As a result, the government has a domestic net borrowing surplus of 64.9 billion shillings in FY’2023/24.

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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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