T-Bill Subscription Dips During The Week As Year Melts

During the week, T-bills were undersubscribed for the third consecutive week, with the overall undersubscription rate coming in at 20.3%, albeit lower than the undersubscription rate of 54.5% recorded the previous week.

Investors’ preference for the shorter 91-day paper persisted, with the paper receiving bids worth Kshs 2.2 bn against the offered Kshs 4.0 bn, translating to an undersubscription rate of 56.1%, significantly lower than the oversubscription rate of 157.9% recorded the previous week.

The subscription rates for the 182-day and 364-day papers decreased to 4.4% and 21.9% respectively from to 30.4% and 37.3% recorded the previous week. The government accepted a total of Kshs 4.8 bn worth of bids out of Kshs 4.9 bn bids received, translating to an acceptance rate of 99.3%.

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The yields on the government papers recorded a mixed performance, with the yield on the 182-day paper remaining unchanged at 10.0%, while the yields on the 364-day and 91-day papers decreased by 12.8 bps and 6.0 bps to 11.4% and 9.9% respectively, from 11.5% and 10.0% respectively recorded the previous week.

At the same time, During the week, the yields on Kenya’s Eurobonds were on an upward trajectory, with the yield on the 13-year Eurobond issued in 2021 increasing the most by 13.5 bps to 10.0% from 9.9% recorded the previous week.

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