In last week’s Central Bank of Kenya (CBK) data, Treasury Bills (T-Bills) were oversubscribed for the first time in four weeks, with the overall subscription rate coming in at 125.5%, up from an undersubscription rate of 39.5 % recorded the previous week.
Investor’s preference for the shorter 91-day paper persisted as they sought to avoid duration risk, with the paper receiving bids worth Ksh.26.7 billion against the offered Ksh.4.0 billion, translating to an oversubscription rate of 667.7%, up from 144.5% recorded the previous week.
The subscription rate for the 364-day paper increased to 22.7%, up from 15.1% recorded the previous week, while the subscription rate for the 182-day paper decreased to 11.4%, from 22.0% recorded the previous week.
The government accepted a total of Ksh.30.1 billion worth of bids out of the total bids received, translating to an acceptance rate of 100.0%.
The yields on the government papers continued to rise, with the yields on the 364-day, 182-day, and 91-day papers increasing by 9.3 bps, 25.2 bps, and 11.0 bps to 12.3%, 12.2%, 12.0% respectively.
