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CBK T Bill returns
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Impunity
#71 Posted : Thursday, October 15, 2015 6:41:12 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
This week the Central Bank of Kenya offered 91-day Treasury Bills for a total of Kshs.4 Billion. The total number of bids received was 566 amounting to Kshs.14.74 Billion, representing a subscription of 368.45%. Total bids accepted amounted to Kshs.12.997 Billion.The market weighted average rate was 22.233 %, and the weighted average of accepted bids which will be applied for non-competitive bids was 22.133% up from 21.353% in the previous auction. The other auction statistics are summarised in the table below.

Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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alutacontinua
#72 Posted : Thursday, October 15, 2015 7:11:00 PM
Rank: Member

Joined: 3/23/2011
Posts: 304
Impunity wrote:
This week the Central Bank of Kenya offered 91-day Treasury Bills for a total of Kshs.4 Billion. The total number of bids received was 566 amounting to Kshs.14.74 Billion, representing a subscription of 368.45%. Total bids accepted amounted to Kshs.12.997 Billion.The market weighted average rate was 22.233 %, and the weighted average of accepted bids which will be applied for non-competitive bids was 22.133% up from 21.353% in the previous auction. The other auction statistics are summarized in the table below.



Anyone else notice how the over-subscription the last couple of weeks has been used??? This week 7.898B of the 12.997B (61%) for redemption and 4.1B (which is what they were initially in the market for) is new borrowing.SMH!!!

We wait for M-Akiba yield now.
You dont have to be great to START but you have to start to be GREAT!!!!!!!!
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maka
#73 Posted : Thursday, October 15, 2015 7:36:56 PM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
alutacontinua wrote:
Impunity wrote:
This week the Central Bank of Kenya offered 91-day Treasury Bills for a total of Kshs.4 Billion. The total number of bids received was 566 amounting to Kshs.14.74 Billion, representing a subscription of 368.45%. Total bids accepted amounted to Kshs.12.997 Billion.The market weighted average rate was 22.233 %, and the weighted average of accepted bids which will be applied for non-competitive bids was 22.133% up from 21.353% in the previous auction. The other auction statistics are summarized in the table below.



Anyone else notice how the over-subscription the last couple of weeks has been used??? This week 7.898B of the 12.997B (61%) for redemption and 4.1B (which is what they were initially in the market for) is new borrowing.SMH!!!

We wait for M-Akiba yield now.


Yep noticed that...in fact if you have been going to CBK regularly you will notice counter 18 and 19 have more than their ordinary share of clients...plus guys are going in aggressively...have peeps quoting 24 upwards for the 1 year amortized bond...
possunt quia posse videntur
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MatataMingi
#74 Posted : Thursday, October 15, 2015 7:56:41 PM
Rank: Member

Joined: 11/17/2009
Posts: 399
Location: Where everyone knows you
@ Maka. 1 year amortized is useless. Amortized bonds should be for 5 year plus. I think the 182/364 days TBills will give better rates. Wait and see
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Othelo
#75 Posted : Thursday, October 15, 2015 8:32:47 PM
Rank: User

Joined: 1/20/2014
Posts: 3,528
Now the other side of the coin, where will Treasury get money to repay these bills/bonds as they mature...... as at now i can see they are excited taking oversubscriptions week in, week out!
Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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enyands
#76 Posted : Thursday, October 15, 2015 8:47:51 PM
Rank: Elder

Joined: 12/25/2014
Posts: 2,301
Location: kenya
Othelo wrote:
Now the other side of the coin, where will Treasury get money to repay these bills/bonds as they mature...... as at now i can see they are excited taking oversubscriptions week in, week out!


That's called kicking the can down the road . The problem is there but you still kick the can hoping the problem Will go .
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kasibitta
#77 Posted : Thursday, October 15, 2015 9:24:34 PM
Rank: Member

Joined: 2/7/2014
Posts: 155
Othelo wrote:
Now the other side of the coin, where will Treasury get money to repay these bills/bonds as they mature...... as at now i can see they are excited taking oversubscriptions week in, week out!


What is the worst case scenario?.Govt defaulting on repaying on Tbills?

Someone asked a simple question about Corporate bonds and then Imperial bank soon was placed under receivership.Is the CBK helping in creating future case studies of how not to run a country finance wise?
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Ericsson
#78 Posted : Thursday, October 15, 2015 9:33:41 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,815
Location: NAIROBI
@Othelo
Treasury will get money to repay these bills/bonds from the taxes KRA collects and new borrowings.
Debt repayment has been given first priority hence treasury will repay the tbills then what is left is what shall be used to meet other operational expenditures like salaries
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Angelica _ann
#79 Posted : Thursday, October 15, 2015 9:37:26 PM
Rank: Elder

Joined: 12/7/2012
Posts: 11,936
kasibitta wrote:
Othelo wrote:
Now the other side of the coin, where will Treasury get money to repay these bills/bonds as they mature...... as at now i can see they are excited taking oversubscriptions week in, week out!


What is the worst case scenario?.Govt defaulting on repaying on Tbills?

Someone asked a simple question about Corporate bonds and then Imperial bank soon was placed under receivership.Is the CBK helping in creating future case studies of how not to run a country finance wise?

CBK is an innocent agent on this one. Treasury are the main actors here, the gobblers of the billions!!!
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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enyands
#80 Posted : Thursday, October 15, 2015 9:39:01 PM
Rank: Elder

Joined: 12/25/2014
Posts: 2,301
Location: kenya
If not careful Greek we come .that's how it all started. We dont have African union to bail us out like European Union
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