Capital Markets

T-bills uptake hits 107pc on long tenor demand

nt

The Treasury building in Nairobi. FILE PHOTO | NMG

Subscription 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.