T-Bills remained oversubscribed in the past week
Last week, T-bills remained oversubscribed, with the overall subscription rate coming in at 152.9 percent, a decline from the 181.8 percent recorded the previous week.
The 91-day paper recorded the highest subscription rate, receiving bids worth Ksh.8.2 billion against the offered Ksh.4.0 billion, translating to a subscription rate of 205.0 percent, a decline from the 209.7 percent recorded the previous week.
The subscription rate for the 364-day paper declined to 172.3 percent, from 243.0 percent recorded the previous week, receiving bids worth Ksh.17.2 billion against the offered amounts of Ksh.10.0 billion.
According to Cytonn report, the subscription rate for the 182-day paper increased to 112.5 percent, from 109.3 percent recorded the previous week, receiving bids worth Ksh.11.3 billion against the offered amounts of Ksh.10.0 billion.
- T-Bills remained undersubscribed in Q1 of 2021
- T-Bills bounce back to oversubscription on improved liquidity
- Investors sold off Ksh.1.9 billion NSE stocks in 5 months
The yields on all three papers declined; with the 91-day, 182-day, and 364-day paper declining by 10.4 bps, 19.5 bps, and 54.3 bps, to 7.0, 7.5, and 8.1 percent respectively.
The government continued to reject expensive bids, accepting Ksh.17.3 billion out of the Ksh.36.7 billion worth of bids received, translating to an acceptance rate of 47.1 percent.
In the Primary Bond Market, there was an oversubscription for this month’s bond offers, with the overall subscription rate coming in at 216.4 percent, having received Ksh.64.9 billion compared to the Ksh.30.0 billion on offer.
The government continued to reject expensive bids, accepting only Ksh.19.7 billion of the Ksh.64.9 billion received, translating to a 30.3 percent acceptance rate.
The Central Bank of Kenya (CBK) had re-opened 2 bonds, FXD1/2019/20 and FXD1/2012/20 with effective tenors of 17.9 years and 11.4 years, and coupons of 12.9 and 12.0 percent, respectively, in a bid to raise Ksh.30.0 billion shillings for budgetary support.
Investors preferred the longer-tenure issue i.e. FXD1/2019/20, which received bids worth Ksh.41.0 billion, representing 63.2 percent of the total bids received.
The weighted average rate of accepted bids for the two bonds came in at 13.3 percent and 12.5 percent, for FXD1/2019/20 and FXD1/2012/20, respectively.