CBK Seeks Ksh 30Bn in its Five and Ten year Treasury Bond

Central Bank’s Ksh 25 Billion Treasury Bond in a Tap Sale  received muted response from investors  amid market anticipation of the outcome of Kenya’s Tuesday polls.

The tap sale auction results for the reopened  10 year Treasury bond (FXD1/2017/10) at the accepted weighted average yield of 13.0 percent and investors put in bids worth Kshs 7.0 bn, which were all accepted leading to a total acceptance rate on the bond to 46.9 percent against an offered amount of Ksh 25Bn.

Analysts indicate that the decline in secondary bond trading has been due to the upcoming election coupled with the announcement of the August primary bond auction of the FXD1/2017/5 and FXD1/2017/010 (re-open) worth Ksh 30bn.

CBK will receive bids for the bonds between Aug. 7 and Aug. 22, and auction the two bonds on Aug. 23.

The five-year bond will have a market-determined coupon, while the reopened 10-year bond has a 12.966 percent coupon.