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T-Bill Subscription Surge As Investors Rush For Short Papers

BY Juma · April 8, 2024 07:04 am

KEY POINTS

The government accepted a total of Kshs 26.2 bn worth of bids out of Kshs 28.5 bn of bids received, translating to an acceptance rate of 92.0 percent.

During the week, T-bills were oversubscribed, with the overall oversubscription rate coming in at 118.7 percent, a reversal from the undersubscription rate of 66.0 percent recorded the previous week.

Investors’ preference for the shorter 91-day paper persisted, with the paper receiving bids worth Kshs 8.7 bn against the offered Kshs 4.0 bn, translating to an oversubscription rate of 217.3 percent, higher than the oversubscription rate of 134.5 percent recorded the previous week.

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The subscription rates for the 182-day paper and 364-day paper increased to 58.7 and 139.1 percent, from 27.0 and 77.5 percent respectively recorded the previous week.

The government accepted a total of Kshs 26.2 bn worth of bids out of Kshs 28.5 bn of bids received, translating to an acceptance rate of 92.0 percent.

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The yields on the government papers were on a downward trajectory, with the yield on the 182-day paper decreasing the most by 1.4 bps to remain relatively unchanged at 16.9 percent, while the yields on the 91-day and 364-day papers decreased marginally by 0.5 bps and 0.01 bps to remain relatively unchanged at 16.7, and 17.0 percent, respectively.

During the week, liquidity in the money markets marginally tightened, with the average interbank rate increasing by 9.2 bps, to 13.8 percent, from 13.7 percent recorded the previous week, partly attributable to the tax remittances that offset government payments. The average interbank volumes traded increased marginally by 2.5 percent to Kshs 24.5 bn from Kshs 23.9 bn recorded the previous week.

Data from this weeks Cytonn Report.

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Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it. (020) 528 0222 or Email: info@sokodirectory.com

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