T-Bills Swim In The Red For Two Weeks Running

During the week, T-bills were undersubscribed for the second consecutive week, with the overall subscription rate coming in at 84.1%, from the undersubscription rate of 92.1% recorded the previous week.

Investors’ preference for the shorter 91-day paper persisted, with the paper receiving bids worth Kshs 16.1 bn against the offered Kshs 4.0 bn, translating to an oversubscription rate of 401.7%, albeit lower than the subscription rate of 450.0% recorded the previous week.

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The subscription rate for the 364-day paper decreased to 25.3% from 34.1% recorded the previous week, while that of the 182-day paper increased to 15.8% from 7.0% recorded the previous week.

The government accepted a total of Kshs 18.8 bn worth of bids out of Kshs 20.2 bn of bids received, translating to an acceptance rate of 93.1%.

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 43.9 bps, 52.5 bps, and 27.2 bps to 15.2%, 14.9%, and 14.8%, respectively.

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During the week, liquidity in the money markets tightened, with the average interbank rate increasing to 12.2%, from 12.1% recorded the previous week, partly attributable to tax remittances that offset government payments.

The average interbank volumes traded decreased by 16.9% to Kshs 21.8 bn, from Kshs 26.3 bn recorded the previous week.

At the same time, during the week, the yields on Eurobonds were on an upward trajectory, with the yield on the 10-year Eurobond issued in 2014 increasing the most by 3.2% points to 16.8%, from 13.6%, recorded the previous week.

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