Cytonn Investments

T-bills subscription rebounds as yield for all tenors dips

Treasury bills subscription rebounded in the weekly auction to post an overall performance rate of 165.65 per cent, boosted by the uptake of all three tenors.

The 364-day paper was heavily subscribed registering the highest rate of 198.43 per cent, up from 155.07 per cent recorded previous week.

Subscription for the 91-day and 182-day papers came in at 120.79 per cent and 150.80 per cent.

However, the yields on the 91-, 182-, and 364-day papers dipped to 7.967 per cent, 10.265 per cent and 11.141 per cent respectively, unlike the previous week when they remained unchanged at 7.974 per cent, 10.269 per cent and 11.145 per cent respectively.

The 91-day paper has been trading below its five-year average of 9.2 per cent.

“The lower yield on the 91-day paper is mainly attributable to the low interest rate environment experienced since the passing of the law capping interest rates,” said analysts at Cytonn Investments.

Data from Central Bank of Kenya (CBK) on Friday showed that investors had put in bids worth Sh39.75 billion against an offer of Sh24 billion, with the Treasury accepting Sh36.26 billion.

Share this Post