The Bourse In A Snippet: CBK Injects Ksh 87.50 Billion Into The Market

During the week, liquidity conditions in the interbank market remained relatively stable with the average lending rate edging up slightly to 12.69% from 12.64% in the prior week. Average traded volumes however declined to KES 24.82bn, a 29.3% growth from KES 35.12bn, as the number of interbank deals decreased to 45 from 52.

The Open Market Operations remained robust, with the Central Bank injecting KES 87.50bn, surpassing its intended target of KES 85bn. Simultaneously, KES 76.09bn was utilized to settle reverse repos issued in the previous week, resulting in a net liquidity injection of KES 11.41bn.

The T-bill auction for the week was oversubscribed, with the overall performance increasing to 126.4%, up from 89.1%, in the previous week. Investors submitted bids totaling KES 30.34bn against an offered amount of KES 24bn.

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Ultimately, KES 25.58bn was accepted at 15.75% (-0.39 bps), 16.62% (-0.91 bps), and 16.81% (-0.38bps), for the 91-day, 182-day, and 364-day papers, respectively.

In the primary bond market, the fiscal successfully raised KES 19.28bn, undershooting the KES 30.0bn that it targeted to raise through: FXD1/2024/10 and FXD1/2016/20. The performance translates to a 75.5% subscription and 85.1% acceptance rate.

FXD1/2024/10 with a coupon rate of 16% saw the highest subscription rate, with the weighted average rate of accepted bids at 16.87%. In contrast, the FXD1/2016/20 bond, which carries a lower coupon rate of 14%, recorded a performance rate of 30.8%. The weighted average rate of accepted bids for this bond was higher at 17.29%.

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