The Central Bank of Kenya received bids worth KSh 10.57 billion for the reopened FXD2/2013/15 and FXD2/2018/15 bonds.
On behalf of the National Treasury, it had a target of raising Ksh 40 billion worth of bonds.
The CBK accepted Ksh 9.31 billion at an average rate of 13.214% and 13.888%, respectively.
The bonds recorded an undersubscription of 26.4%, partly attributable to investors’ preference for the shorter-dated papers as they sought to avoid duration risks and partly due to tightened liquidity during the issue.
“In H2-2022, we anticipate favourable demand for short-term papers amid rising inflation and interest rate expectations. The government’s enhanced appetite will further anchor the yield curve’s upward adjustment for local deficit financing as external credit markets tighten,” NCBA Market Research projects in their Fixed Weekly Bulletin.
The central bank received Ksh 34.58 billion in bids for the T-bills against the weekly target of Ksh 24.00 billion. The fiscal agent accepted Ksh 30.76 billion at an average yield of 8.322%, 9.393%, and 9.968% for the 91, 182, and 364-day papers, respectively.
