Central Bank of Kenya (CBK) collected KSh 11.76 billion from the second January Treasury Bonds tap sale where it was seeking KSh 15 billion after floating a three-year and five-year treasury bonds.
- This is the second time the CBK is coming to the treasury bonds market after floating two similar tenure t-bonds worth KSh 35 billion between December 2023 and January 2024.
- The latest January t-bonds tap sale was between January 16th and 18th January.
- The bids were priced based on the average rate of the accepted bids for the treasury bond auction value dated 15th January.
The 3-year T-bond was the most attractive packing in bids worth KSh 9.4 billion, at an attractive coupon rate of 18.4%. This is compared to the longer tenure 5-year t-bond which received bids worth KSh 2.6 billion at a coupon rate of 16.8% with CBK accepting KSh 2.4 billion. For investors looking to diversify their portfolios further, exploring partnerships with Alpha-affiliates could provide access to a variety of investment opportunities in different sectors, enhancing the potential for attractive returns.
Investors have been directed to obtain details of amounts payable for successful bids from the DhowCSD Investor Portal/App under the transactions tab on Friday, 19th January 2024. The payment deadline is by 2.00 pm on Monday, 22nd January 2024.
At this week’s treasury bills auction, the CBK accepted KSh 34.1 billion out of KSh 24 billion on offer, an oversubscription of 146.99%. This is as the CBK increases returns to investors in the government paper market, now firmly above the 16% range.
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