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T-bill advise
Rank: Member Joined: 10/6/2008 Posts: 21
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Mkimwa wrote:"The market weighted average rate was 18.362 %, and the weighted average of accepted bids which will be applied for non-competitive bids was 18.607% up from 14.486% in the previous auction. "
Did the CBK reject bids with lower rates, else how can the average of the accepted bids be higher that the marked weighted average rate?
This looks like a typo, the pdf document shows 18.632% as the market weighted average rate.
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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Poilaq wrote:Mkimwa wrote:"The market weighted average rate was 18.362 %, and the weighted average of accepted bids which will be applied for non-competitive bids was 18.607% up from 14.486% in the previous auction. "
Did the CBK reject bids with lower rates, else how can the average of the accepted bids be higher that the marked weighted average rate?
This looks like a typo, the pdf document shows 18.632% as the market weighted average rate. Even nicer music to liquid guys like me. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Waiting to see how money market funds will react next week..
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Impunity wrote:Poilaq wrote:Mkimwa wrote:"The market weighted average rate was 18.362 %, and the weighted average of accepted bids which will be applied for non-competitive bids was 18.607% up from 14.486% in the previous auction. "
Did the CBK reject bids with lower rates, else how can the average of the accepted bids be higher that the marked weighted average rate?
This looks like a typo, the pdf document shows 18.632% as the market weighted average rate. Even nicer music to liquid guys like me. NSE can only go Southwards! The opposite of courage is not cowardice, it's conformity.
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Rank: Member Joined: 1/22/2015 Posts: 682
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Please educate me. So is this a good time to buy the T bills? People seem to be suggesting hoarding cash. Why? Or do you mean cashing out on stocks?
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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Mike Ock wrote:Please educate me. So is this a good time to buy the T bills? People seem to be suggesting hoarding cash. Why? Or do you mean cashing out on stocks? Its a catch 22 situation, you should sell Stocks now and buy T-Bills...but in a few weeks the stocks will be dirt cheap also also...so you should also be buying shares then. Just balance, but which Commercial bank can give you 18% pa for 3 months interest rate on a meager saving like KES. 50,000?  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 1/3/2014 Posts: 257
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Impunity wrote:Mike Ock wrote:Please educate me. So is this a good time to buy the T bills? People seem to be suggesting hoarding cash. Why? Or do you mean cashing out on stocks? Its a catch 22 situation, you should sell Stocks now and buy T-Bills...but in a few weeks the stocks will be dirt cheap also also...so you should also be buying shares then. Just balance, but which Commercial bank can give you 18% pa for 3 months interest rate on a meager saving like KES. 50,000? @Mike Ock the suggestion is to cash out on stocks. Now once you have the cash as @impunity elaborated, it is a tricky balance between keeping cash or buying T-bills.
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Rank: Member Joined: 3/23/2011 Posts: 304
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I for one would really like to read the minutes of the meeting on September 8th between CBK and commercial banks. Talk of some filled bids at 22.5% on the 91 day T-bill today by some traders. The shilling has been consolidating between 106 - 105 level after CBK intervention on the 8th then this article appears....... http://www.businessdaily.../-/hjjjcwz/-/index.html
You dont have to be great to START but you have to start to be GREAT!!!!!!!!
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Rank: Member Joined: 3/23/2011 Posts: 304
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There is something seriously wrong with the fundamentals in the country.....not seeing how one could justify high interest rates (15% plus) while inflation is at 5.8%. Ghana's inflation is at about 17% thus their interest rates are at about 25%. Could anyone expound on the reasons for the deviations from fundamentals? You dont have to be great to START but you have to start to be GREAT!!!!!!!!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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alutacontinua wrote:There is something seriously wrong with the fundamentals in the country.....not seeing how one could justify high interest rates (15% plus) while inflation is at 5.8%. Ghana's inflation is at about 17% thus their interest rates are at about 25%.
Could anyone expound on the reasons for the deviations from fundamentals? I also don't understand this madness! This is now chaotic. This will crash the economy if sustained to the year end as recession pops up its ugly head.. Job losses, labour strikes, failed businesses, tax deficits, political stress etc. What's the point? Where is Kibaki?$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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hisah wrote:alutacontinua wrote:There is something seriously wrong with the fundamentals in the country.....not seeing how one could justify high interest rates (15% plus) while inflation is at 5.8%. Ghana's inflation is at about 17% thus their interest rates are at about 25%.
Could anyone expound on the reasons for the deviations from fundamentals? I also don't understand this madness! This is now chaotic. This will crash the economy if sustained to the year end as recession pops up its ugly head.. Job losses, labour strikes, failed businesses, tax deficits, political stress etc. What's the point? Where is Kibaki? At 5.8% inflation technically they are saying we have been in a period of disinflation for the last two months. I think not. Inflation from the demand side is an impossibility given the economic conditions but the supply dynamics paint a different picture. Pass through inflation from the weakened KES and electricity tariff hike should have registered a nudge already. Low oil prices have barely registered a significant decline in pump prices. Those figures are definitely doctored. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Member Joined: 5/6/2008 Posts: 199
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Is the inverted yield curve upon us together with all that it signals?
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Rank: Member Joined: 3/23/2011 Posts: 304
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Graph comparing inflation and interest rates over the last 5 years. http://cdn.tradingeconom...l2=/kenya/interest-rate
CBK looks to have adopted a wait and see/react after data approach during Njuguna Ndungu's tenure. You dont have to be great to START but you have to start to be GREAT!!!!!!!!
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Rank: Member Joined: 3/23/2011 Posts: 304
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KENYA HAS signed Sh104 billion loans since November 2014 to date,amount to be paid until 2085,report by Treasury to National Assembly states. ~ DAILY NATION 2085....i fear for my grandkids Whats worrying is that it doesn't look like gvt will be slowing down any time soon.... You dont have to be great to START but you have to start to be GREAT!!!!!!!!
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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alutacontinua wrote:KENYA HAS signed Sh104 billion loans since November 2014 to date,amount to be paid until 2085,report by Treasury to National Assembly states. ~ DAILY NATION
2085....i fear for my grandkids
Whats worrying is that it doesn't look like gvt will be slowing down any time soon....
Is there any infrastructure investment it's doing with all that money that can repay itself ama ni mishahara na wheelbarrow worth 109,000
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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364 day TB at 20.6% and 182 day at 20.3% in todays auction and still undersubscribed.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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cnn wrote: 364 day TB at 20.6% and 182 day at 20.3% in todays auction and still undersubscribed. What about 91 day TB?
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Rank: Member Joined: 5/6/2011 Posts: 391 Location: Nairobi
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Can one EFT or RTGS amounts below 1 million for the purchase of T Bills? "You can't have everything. Where would you put it?" - Stephen Wright
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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Speculz wrote:Can one EFT or RTGS amounts below 1 million for the purchase of T Bills? Yes,i have used RTGS for such.
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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Chaka wrote:cnn wrote: 364 day TB at 20.6% and 182 day at 20.3% in todays auction and still undersubscribed. What about 91 day TB? The auction for 91 day is done on Thursdays.
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