T-Bills remained oversubscribed past week on eased liquidity

Kenyan shilling now 0.08 units shy to hit 113 level never witnessed before

T-bills were oversubscribed, with the overall subscription rate coming in at 156.4 percent, up from the 96.6 percent recorded the previous week.

This is attributable to the eased liquidity in the money market.

 The 364-day paper recorded the highest subscription rate, receiving bids worth Ksh.19.4 billion against the offered Ksh.10.0 billion, translating to a subscription rate of 194.0 percent, an increase from the 112.0 percent recorded the previous week.

Subscription rate for the 182-day paper increased as well to 137.2% from 63.3% while that of the 91-day paper declined to 110.1%, from 141.3% recorded the previous week. \

The yields on the government papers recorded mixed performance, with the yields on the 182-day and 364-day papers increasing by 4.0 bps and 3.0 bps to 8.1% and 9.5%, respectively, while the yield on the 91-day paper declined by 3.6 bps to 7.3%.

According to Cytonn weekly report, the government continued to reject expensive bids, accepting Ksh.31.1 billion bids out of the Ksh.37.5 billion worth of bids received, translating to an acceptance rate of 82.8%.

In the money markets, 3-month bank placements ended the week at 7.7% (based on what was offered by various banks), while the yield on the 91-day T-bill declined by 3.6 bps to 7.3%.

The average yield of the Top 5 Money Market Funds remained relatively unchanged at 9.8% as was recorded the previous week while the yield on the Cytonn Money Market Fund declined marginally by 0.1% point to 10.4% from 10.5%, recorded the previous week.

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China's central bank

Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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