CBK 20.2 Billion Shillings in Bids in May’s Bond Auction

The results for this month’s auction, the FXD1/2018/15 were published on Wednesday evening falling within market expectations thus analysts say that they do not expect much excitement around the results.

The CBK received 20.2 billion shillings in bids a 50.5 percent performance rate. According to the results, only 12.1 billion shillings was accepted at an average yield of 13.078 percent.

Analysts at Genghis Capital foresee a tap sale in the offing in the coming month. The shilling continued weakening closing at 100.7 and analysts expect it to trade at between 100.80 -101 in today’s trading session.

The overnight rate also remained stagnant at 5.7 billion shillings on thin volumes of 7 billion shillings.

With the primary auction out of the way and no curve ball coming from the treasury, experts expect a focus on the secondary market to remain on the short end but also expect the infrastructure bonds to pick up in trading.

Local investors accounted for 68 percent of total market activity, taking over dominance from their foreign counterparts.

They pushed volumes in KCB and Equity at levels of KES 47 and lower for KCB and 49.50-50 shillings for Equity Bank.

“We might see a persistence of yesterday’s trading in today’s session with most activity on the two major banking counters,” said analysts from Genghis.