Appetite for bonds grows on improved liquidity (Kenya)

By James Ngurinji | Business Daily, Kenya September 22, 2017

The subscription rate for this month’s Treasury bonds improved to 147.6 per cent of the floated amount compared to a similar auction in August that stood at 88.6 per cent.

Data from the Central Bank of Kenya (CBK) released Thursday showed that this month’s auction received bids worth Sh44.3 billion against a target of Sh30 billion from the two-year and re-opening of 10-year bond respectively, compared to August’s auction which attracted bids worth Sh26.6 billion against a target of Sh30 billion.

In August, the Treasury had issued a five-year bond and re-opened a 10-year paper. The two-year bond attracted bids worth Sh34.4 billion, with the Treasury only accepting Sh20.6 billion. The 10-year bond received bids worth Sh9.9 billion with the government accepting Sh6.2 billion.

The market weighted average rate was 11.76 per cent (two-year bond) and 13.16 per cent (10-year bond), down from 12.65 per cent and 12.51 per cent respectively.

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