Posted On: 28-03-2025

T-Bills Undersubscribed

Treasury bills (T-bills) experienced an undersubscription for the first time in seven weeks, with the overall subscription rate falling to 61.4%. This marks a sharp reversal from the 129.0% oversubscription recorded the last week.

Investor demand for the 91-day T-bill declined, attracting bids worth Ksh 2.8 billion against the Ksh 4.0 billion on offer, resulting in an undersubscription rate of 69.8%. However, this was an improvement from the 43.2% undersubscription recorded the prior week. Subscriptions for the 182-day paper fell significantly to 17.1%, down from 84.0% the previous week, while the 364-day paper saw its subscription rate drop to 102.5% from 208.2%.

Despite the lower demand, the government accepted Ksh 14.5 billion in bids out of the Ksh 14.7 billion received, translating to an acceptance rate of 98.4%.

Meanwhile, yields on government securities continued to decline. The 364-day T-bill yield saw the largest drop, decreasing by 4.9 basis points (bps) to 10.4% from 10.5% recorded the previous week. The 91-day and 182-day T-bill yields also edged lower by 4.9 bps and 2.8 bps, remaining relatively unchanged at 8.8% and 9.1%, respectively.

Navigating Market Trends with  Zurit Consulting

In an ever-changing financial landscape, informed decision-making is key to maximizing returns. Zurit Consulting provides expert wealth management solutions, helping investors navigate fixed-income markets, optimize portfolios, and achieve their financial goals. Whether you're looking to understand T-bill trends or structure long-term investment strategies, we’re here to guide you. Contact us today and invest with confidence!