T-Bills oversubscribed for second week as investors opt for a 91-day shorter paper

The Treasury Bills (T-Bills) were oversubscribed for the second week, with the subscription rate coming in at 186.2%, albeit lower than the oversubscription rate of 199.7% recorded the previous week.

Investors’ preference for the shorter 91-day paper persisted, with the paper receiving bids worth Ksh.38.2 billion against the offered Ksh.4.0 billion, translating to an oversubscription rate of 955.7%, albeit lower than the 1044.6% recorded the previous week.

The subscription rate for the 364-day paper increased to 25.9% from 9.0% recorded the previous week, while the subscription rate for the 182-day paper decreased to 38.6% from the 52.5% recorded the previous week.

The government accepted a total of Ksh.43.6 billion worth of bids out of Kshs.44.7 billion of bids received, translating to an acceptance rate of 97.5%.

The yields on the government papers recorded a mixed performance, with the yields on the 364-day paper and 91-day paper increasing by 40.6 bps and 36.5 bps to 13.7% and 13.5% respectively while the yields on the 182-day paper decreased by 16.2 bps to 13.3%.

So far in the current FY’2023/24, government securities totalling Ksh.292.0 billion have been advertised, and bids amounting Ksh.377.8 billion have been received, comprising Ksh.228.6 billion in T-Bills and Ksh.149.2 billion in bonds, respectively.

The government has accepted bids worth Ksh.320.4 billion, of which Ksh.219.3 billion and Ksh.101.1 billion were treasury bills and bonds, respectively.

Total redemptions so far in FY’2023/24 equal to Ksh.269.5 billion, with T-Bills accounting for all redemptions.

As a result, the government has a domestic borrowing surplus of Ksh.50.9 billion in FY’2023/24.

Lawrence Baraza

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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