CBK to Sell 15-Yr Treasury Bond in January Worth Ksh 30 Billion

Central Bank of Kenya has announced plans to re-open 15-year Treasury bond worth KES 30 billion this month.

According to CBK, the bond will have a 13.500 percent coupon. It will take bids until January 24 and auction the bond on January 25 whose maturity is 5 years.

Analysts state that with Friday being the end of the liquidity cycle, they expect little to no activity by banks in a bid to maintain their CRR levels.

Cytonn Investments, “The Government is expected to remain under no pressure to borrow domestically for the 2nd half of the 2016/2017 fiscal year following the enactment of the Banking (Amendment) Act, 2015, and hence we expect secondary bond market activity and turnover to remain high in 2017.”

The 91-day T-bill auction results came in at 8.648 percent up from 8.552 percent with subscription of KES 3.45Bn against an offer amount of KES 4Bn, while the 182-day T-bill and 364 day T-bill came in at 10.463% and 10.989 percent respectively.