T-bills were undersubscribed, with the overall undersubscription rate coming in at 93.5 percent, a reversal from the oversubscription rate of 174.2 percent recorded the previous week.
Investors’ preference for the shorter 91-day paper persisted, with the paper receiving bids worth Kshs 14.1 bn against the offered Kshs 4.0 bn, translating to an oversubscription rate of 351.4 percent, lower than the oversubscription rate of 515.5 percent recorded the previous week.
The subscription rates for the 182-day paper and 364-day paper decreased significantly to 36.0 and 47.7 percent respectively from 100.6 and 111.3 percent respectively, recorded the previous week.
The government accepted a total of Kshs 19.8 bn worth of bids out of Kshs 22.4 bn of bids received, translating to an acceptance rate of 88.5 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 0.4 bps, 4.2 bps, and 3.8 bps to 17.0, 16.9, and 16.7 percent, respectively.
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At the same time, during the week, liquidity in the money markets eased, with the average interbank rate decreasing by 36.8 bps to 13.2 percent from 13.6 percent recorded the previous week, partly attributable to government payments that offset tax remittances.
The average interbank volumes traded increased significantly by 45.3 percent to Kshs 29.9 bn from Kshs 20.5 bn recorded the previous week.
The yields on Kenya’s Eurobonds recorded mixed performance, with the yields on the 10-year Eurobond issued in 2018 decreasing the most by 15.2 bps to 9.1 percent from 9.2 percent recorded the previous week, while the yields on the recent 6-year issue increased marginally by 2.7 bps, to remain relatively unchanged at 9.5 percent.
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