Average rate of the 182-day
T-bill declined to 3.429 percent from the 3.471 percent for the 183-day paper in the previous auction.
While the last PIB auction witnessed low returns on longer tenures, the scenario was opposite in the
T-bill auction.
The 182-day
T-bill was awarded the full P5 billion, with bids amounting to P14.11 billion.
Tenders for the 91-day
T-bills reached P13.35 billion and the auction committee made a full award of P4 billion, while bids for the 182-day tenor amounted to P27.63 billion or more than five times the P5-billion volume.
Commenting on this occasion, Abdullah Janahi, Director of Trading Operations, said, "The new tick size which came into effect on 19th of May 2019 will allow the unification of the security tick size movements for all the securities traded in BHB's market (excluding Debt and
T-bill securities).
There was a significant rally in
T-bills and bonds.
The Thursday auction proceeds were was nearly double the amount Central Bank accepted for
T-bills offered the previous week at Sh8.92 billion.
'The money market (
T-bill rates) has already priced in the anticipated 100-basis-point hike.
The weighted average yield of the 6-month
T-Bill will serve as the new benchmark for the second issue of the floating rate PIB, it was up by 48 basis points to 6.8322 per cent.
The slowdown in
T-bill issuance marks a change of strategy as the government looks to increase its financing from external sources and longer-dated domestic issuances.
By GEOFFREY IRUNGUThe Treasury raised Sh28.1 billion in last week's
T-bill auction after its latest offers were oversubscribed.Investors put in bids amounting to S3.2 billion against an offer of Sh24 billion as liquidity in the money market improved.
Result of
T-Bill auction raised hopes of rate hike as banks did not bid in 6 and 12 month
T-Bill auction.
The revised G-sec and
T-Bill calendar for Q4 FY18 are being notified, the Ministry revealed.
The Series AL Preferred Shares will pay for each quarterly period beginning with the quarter ending March 31, 2017, as and when declared by the Board of Directors of BCE, a quarterly floating cash dividend based on the
T-Bill Rate for such quarterly period plus 1.88%, calculated in accordance with the articles of BCE.
The central bank had cancelled all of its previous monthly
T-bill auctions this year.
