Wazua
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CBK T Bill returns
Rank: Member Joined: 11/15/2010 Posts: 454 Location: Nairobi
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Forgive my late entry to this discussion, wahenga walisema "better late than Never". can someone advise me and few wazuan who are clueless on how to buy T-Bills & Bonds. do we just visit out stockbroker or somehow we have to approach CBK? ....He who began a good work in you will carry it on to completion..
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Rank: Elder Joined: 6/23/2009 Posts: 13,528 Location: nairobi
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21.5% average as at today's auction. Kwisha sisi
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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obiero wrote:21.5% average as at today's auction. Kwisha sisi Quote:This week the Central Bank of Kenya offered 182 and 364 Days Treasury Bills for a total of Kshs.8 Billion. The total number of bids received was 202 amounting to Kshs.5.67 Billion representing 142% subscription and 518 bids amounting to Kshs.12.63 Billion representing 316% subscription for 182 and 364 days, respectively. Bids accepted amounted to Kshs.5.3 Billion for 182 days and Kshs.8.9 Billion for 364 days Treasury Bills. The weighted average rate of accepted bids, which will be applied for non-competitive bids, was 21.607% for the 182-day and 21.498% for 364-day Treasury Bills. The other auction statistics are summarised in the table below. Very disorderly at the moment.$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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hisah wrote:obiero wrote:21.5% average as at today's auction. Kwisha sisi Quote:This week the Central Bank of Kenya offered 182 and 364 Days Treasury Bills for a total of Kshs.8 Billion. The total number of bids received was 202 amounting to Kshs.5.67 Billion representing 142% subscription and 518 bids amounting to Kshs.12.63 Billion representing 316% subscription for 182 and 364 days, respectively. Bids accepted amounted to Kshs.5.3 Billion for 182 days and Kshs.8.9 Billion for 364 days Treasury Bills. The weighted average rate of accepted bids, which will be applied for non-competitive bids, was 21.607% for the 182-day and 21.498% for 364-day Treasury Bills. The other auction statistics are summarised in the table below. Very disorderly at the moment. The 91 day @ 21.3%,marginally lower than for the longer tenors.I want to believe we can't go over 22%,these are wild rates.
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Rank: Member Joined: 3/23/2011 Posts: 304
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Subscription rate for the just concluded 91-day T-bill auction was a massive 427% yet the NSE is holding steady above 4000. Anyone with an idea where the money flows are coming from? Yet again CBK was looking for 4B and accepted 12.6B..... I am not understanding why GoK is cash strapped. Summary of the auction: https://www.centralbank....20dated%2012.10.2015.pdfYou dont have to be great to START but you have to start to be GREAT!!!!!!!!
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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cnn wrote:hisah wrote:obiero wrote:21.5% average as at today's auction. Kwisha sisi Quote:This week the Central Bank of Kenya offered 182 and 364 Days Treasury Bills for a total of Kshs.8 Billion. The total number of bids received was 202 amounting to Kshs.5.67 Billion representing 142% subscription and 518 bids amounting to Kshs.12.63 Billion representing 316% subscription for 182 and 364 days, respectively. Bids accepted amounted to Kshs.5.3 Billion for 182 days and Kshs.8.9 Billion for 364 days Treasury Bills. The weighted average rate of accepted bids, which will be applied for non-competitive bids, was 21.607% for the 182-day and 21.498% for 364-day Treasury Bills. The other auction statistics are summarised in the table below. Very disorderly at the moment. The 91 day @ 21.3%,marginally lower than for the longer tenors.I want to believe we can't go over 22%,these are wild rates. We might just go above... possunt quia posse videntur
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Rank: Elder Joined: 6/23/2009 Posts: 13,528 Location: nairobi
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maka wrote:cnn wrote:hisah wrote:obiero wrote:21.5% average as at today's auction. Kwisha sisi Quote:This week the Central Bank of Kenya offered 182 and 364 Days Treasury Bills for a total of Kshs.8 Billion. The total number of bids received was 202 amounting to Kshs.5.67 Billion representing 142% subscription and 518 bids amounting to Kshs.12.63 Billion representing 316% subscription for 182 and 364 days, respectively. Bids accepted amounted to Kshs.5.3 Billion for 182 days and Kshs.8.9 Billion for 364 days Treasury Bills. The weighted average rate of accepted bids, which will be applied for non-competitive bids, was 21.607% for the 182-day and 21.498% for 364-day Treasury Bills. The other auction statistics are summarised in the table below. Very disorderly at the moment. The 91 day @ 21.3%,marginally lower than for the longer tenors.I want to believe we can't go over 22%,these are wild rates. We might just go above... Lending rates have crossed 24% so we may need to see atleast 25% before end of November
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 3/23/2011 Posts: 304
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GoK looks to now be shifting its borrowing to international markets as domestic rates are just too high. $750 million borrowed at 8% from Standard Chartered, Citi Bank and CFC Stanbic. http://www.standardmedia...oan-in-crisis-borrowing
This should now put a short term cap on rates.....FED rate hike pending You dont have to be great to START but you have to start to be GREAT!!!!!!!!
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Rank: Member Joined: 1/3/2014 Posts: 257
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obiero wrote:maka wrote:cnn wrote:hisah wrote:obiero wrote:21.5% average as at today's auction. Kwisha sisi Quote:This week the Central Bank of Kenya offered 182 and 364 Days Treasury Bills for a total of Kshs.8 Billion. The total number of bids received was 202 amounting to Kshs.5.67 Billion representing 142% subscription and 518 bids amounting to Kshs.12.63 Billion representing 316% subscription for 182 and 364 days, respectively. Bids accepted amounted to Kshs.5.3 Billion for 182 days and Kshs.8.9 Billion for 364 days Treasury Bills. The weighted average rate of accepted bids, which will be applied for non-competitive bids, was 21.607% for the 182-day and 21.498% for 364-day Treasury Bills. The other auction statistics are summarised in the table below. Very disorderly at the moment. The 91 day @ 21.3%,marginally lower than for the longer tenors.I want to believe we can't go over 22%,these are wild rates. We might just go above... Lending rates have crossed 24% so we may need to see atleast 25% before end of November Speaking of lending rates...There are two opposing camps About 2 months ago we had this http://www.businessdaily.../-/jwxhioz/-/index.html which led to this http://www.nation.co.ke/.../-/9s458kz/-/index.html Now we have this http://www.theeastafrica...1/-/4kxtek/-/index.html So which move will lead to lower lending rates? Having fewer banks or many banks? There seems to be a contradiction on approach between CB/MPs and Treasury.
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Rank: Member Joined: 3/23/2011 Posts: 304
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Another Ksh. 10.22 Billion borrowed today by CBK. 182 @21.84% and 364 @21.882% Here is the link : https://www.centralbank....0dated%2019.10.2015.pdf
Subscription rates heavily shifting towards the 364 day t-bill. This auction had a total of 313.93% (364 day) and 93.41% (182 day). Seeing as NSE has closed below the 4000 level and todays bloodbath in the financials....flight to safety will be the order of the day. Lets see how tomorrows 91-day auction goes. You dont have to be great to START but you have to start to be GREAT!!!!!!!!
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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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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Rank: Member Joined: 3/23/2011 Posts: 304
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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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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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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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Rank: Member Joined: 11/17/2009 Posts: 398 Location: Where everyone knows you
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@ 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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Rank: User Joined: 1/20/2014 Posts: 3,528
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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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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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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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Rank: Member Joined: 2/7/2014 Posts: 155
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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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Rank: Elder Joined: 12/4/2009 Posts: 10,701 Location: NAIROBI
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@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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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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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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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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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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