The Central Bank of Kenya’s switch auctions offer of existing T-bills, and two-year bondholders were undersubscribed with the total received bids worth Kshs 52.9 billion against a target of 87.8 billion.
The government accepted bids worth Kshs 49.1 billion, translating to an acceptance rate of 92.8%. The coupon rate and the average market yield for the bond both came at 13.2%.
“The undersubscription…partly attributable to investors avoiding the duration risk and tightened liquidity in the money market,” said Cytonn Investments.
Kenya had switched the auction of three treasury bills to an Infrastructure Bond issue No. IFB1/2022/6 in a bid to raise Ksh.87.8 billion to meet upcoming maturities.
