Treasury Bills Top The Table In The First 3 Months Of 2024

During the quarter, T-bills were oversubscribed, with the overall subscription rate coming in at 132.6%, up from 130.0% in Q4’2023.

Investors’ preference for the 91-day paper persisted as they sought to avoid duration risk, with the paper receiving bids worth Kshs 276.9 bn against the offered Kshs 56.0 bn, translating to an oversubscription rate of 494.4%, lower than the oversubscription rate of 602.7% recorded in the previous quarter.

Overall subscriptions for the 182-day and 364-day papers increased to 56.3% and 64.3% from 45.7% and 22.0% in Q4’2023, respectively.

The yields on all the papers were on an upward trajectory with the average yields on the 364-day, 182-day, and 91-day papers increasing by 119.4 bps, 118.3 bps, and 114.0 bps to 16.7%, 16.6%, and 16.4%, from 15.5%, 15.4% and 15.3%, respectively, recorded in Q4’2023.

The upward trajectory in yields is mainly on the back of investors attaching higher risks amid high inflation and tight liquidity positions, hence the need to demand higher returns to cushion against the possible loss.

The acceptance rate during the period came in at 88.8%, albeit lower than the 91.9 recorded in Q4’2023, with the government accepting a total of Kshs 395.6 bn out of the Kshs 445.7 bn worth of bids received;

During the week, T-bills were undersubscribed, with the overall undersubscription rate coming in at 66.0%, a reversal from the oversubscription rate of 102.8% recorded the previous week.

Read Also: T-Bills Swim In The Red For Two Weeks Running

Investor’s preference for the shorter 91-day paper persisted as they sought to avoid duration risk, with the paper receiving bids worth Kshs 5.4 bn against the offered Kshs 4.0 bn, translating to an oversubscription rate of 134.5%, lower than the oversubscription rate of 291.2% recorded the previous week.

The subscription rates for the 182-day paper and 364-day paper decreased to 27.0% and 77.5% respectively, from 40.9% and 89.4% respectively recorded the previous week.

The government accepted a total of Kshs 13.5 bn worth of bids out of Kshs 15.8 bn of bids received, translating to an acceptance rate of 85.3%.

The yields on the government papers recorded mixed performances, with the yield of the 364-day paper increasing marginally by 0.1 bps to remain relatively unchanged at 17.0%, while the 182-day and 91-day papers decreased marginally by 2.6 bps and 0.2 bps to 16.9%, and 16.7%, respectively;

During the week, the Kenya National Bureau of Statistics released data for the y/y inflation rates for March. Inflation in the month eased by 0.6% points to 5.7%, from the 6.3% recorded in February 2024. This was according to our expectations and projection that it would come within a range of 5.7% to 6.1%;

During the week, Zambia’s Ministry of Finance and National Planning announced that the country had reached an agreement on debt restructuring terms with the steering committee on debt restructuring. Zambia had defaulted on its USD 3.5 bn Eurobond back in November 2020 and has been working on getting its debt restructured under the G20’s Common Framework.

Read Also: T-Bills Drops Further, Hits 56.9% In Subscription During The Week

Data from https://cytonnreport.com/research/cytonn-quarterly-markets-review-q1-2024