Capital Markets
T-bills uptake hits 107pc on long tenor demand
Monday April 09 2018Subscription for the Treasury bills more than doubled last week to record an overall 107 per cent performance, from an under-subscription of 52.8 per cent recorded previous week.
The overall acceptance rate increased to 99.4 per cent compared to 92.9 per cent of previous week, with the Treasury accepting a total of Sh25.52 billion of the Sh25.68 billion investors offered. The State had offered Sh24 billion notes.
The rebound was mainly driven by the subscription of the 364-day paper, which hit Sh15.56 billion of the offered Sh10 billion,” analysts at Genghis Capital yesterday said in a note to investors.
They expect the subscription to remain healthy during this week’s auction.
The subscription rates for the 91-, 182-, and 364-days papers came in at 73.85 per cent, 71.65 per cent and 155.62 per cent respectively.
Yields on the 91- and 364-day papers remained unchanged at eight per cent and 11.1 per cent respectively, while those on the 182-day paper declined by 10 basis points (bps) to 10.3 per cent, from 10.4 per cent recorded the previous week.