During the third quarter of 2021, T-bills were undersubscribed, with the overall subscription rate coming in at 87.8 percent, down from 115.3 percent recorded in the second quarter of2021, as investors shifted their interest to the bond market in search of higher yields.
The subscription rate for the 91-day and 182-day papers according to the Cytonn report, increased to 163.1 and 92.1 percent, respectively, from 94.2 and 56.1 percent, recorded in Q2’2021.
On the other hand, the subscription rate for the 364-day paper declined to 39.0 percent, from 183.0 percent recorded in Q2’2021.
The average yields for the 364-day, 182-day, and 91-day papers declined to 7.6, 7.1, and 6.7 percent in Q3’2021, respectively, from 9.0, 7.8, and 6.9 percent, recorded in Q2 of 2021.
The acceptance rate in Q3’2021 increased to 94.7 percent, from 66.7 percent in Q2’2021, with the government accepting a total of Ksh.237.0 billion, of the Ksh.252.8 billion worth of bids received.
During the week, T-bills remained undersubscribed, with the overall subscription rate coming in at 42.2 percent, a marginal decline from 42.3 percent recorded the previous week.
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The 91-day paper recorded the highest subscription rate, receiving bids worth Ksh.2.6 billion against the offered Ksh.4.0 billion, translating to a subscription rate of 66.0 percent, a decrease from 119.8 percent recorded the previous week.
The subscription rate for the 182-day and the 364-day papers increased to 53.4 and 21.6 percent, from 46.7 and 7.0 percent, respectively, recorded the previous week.
The yields on the 91-day and 364-day papers increased by 0.9 bps and 5.9 bps, to 6.9 and 7.9 percent, respectively, while the yield on the 182-day paper remained unchanged at 7.3 percent.
The government accepted Ksh.9.6 billion, out of the 10.1 billion bids received, translating to an acceptance rate of 94.9 percent.
At the same time, during Q3’2021, the Government issued nine Treasury bonds seeking to raise Ksh.245.0 billion and they were generally oversubscribed, receiving bids totaling Ksh.411.3 billion.
The government was keen on maintaining low rates and thus accepted only Ksh.304.4 billion of the Ksh.411.3 billion worth of bids received, translating to an acceptance rate of 78.2 percent.