T-Bill Subscription Hits 154.1% During The Week

During the week, T-bills were oversubscribed for the eighth consecutive week, with the overall oversubscription rate coming in at 154.1%, albeit lower than the oversubscription rate of 177.8% recorded the previous week.

Investors’ preference for the shorter 91-day paper persisted, with the paper receiving bids worth Kshs 9.9 bn against the offered Kshs 4.0 bn, translating to an oversubscription rate of 247.6%, significantly lower than the oversubscription rate of 654.1% recorded the previous week.

The subscription rates for the 182-day paper decreased to 74.2% from 112.3% recorded the previous week, while the subscription rates for the 364-day paper increased significantly to 196.5% from the 52.8% recorded the previous week.

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The government accepted a total of Kshs 23.1 bn worth of bids out of Kshs 37.0 bn of bids received, translating to an acceptance rate of 62.4%.

The yields on the government papers continued to rise, with the yields on the 364-day, 182-day, and 91-day papers increasing by 0.1 bps, 1.9 bps, and 3.6 bps to 16.9%, 16.7%, and 16.6%, respectively.

The chart below shows the yield growth rate for the 91-day paper over the period:

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At the same time, during the week, the equities market was on an upward trajectory, with NSE 10 gaining the most by 3.4%, while NSE 25, NASI, and NSE 20 gained by 3.1%, 1.9%, and 1.0% respectively, taking the YTD performance to gains of 0.9%, 1.8%, 3.7%, and 3.8% for NASI, NSE20, NSE 25 and NSE 10 respectively.

The equities market performance was driven by gains recorded by large-cap stocks such as Equity Group, Co-operative Bank, and NCBA of 8.0%, 6.6%, and 3.6% respectively.

The gains were, however, weighed down by losses recorded by large-cap stocks such as EABL, BAT, and DTBK of 3.4%, 1.0%, and 0.1% respectively.

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