The Central Bank of Kenya (CBK) has raised KSh 30.17 billion from its June auction of the reopened five-year and ten-year bonds whose sale closed on Wednesday.
- The papers have remaining terms to maturity of 4.1 years and 8.78 years respectively.
- The paper was oversubscribed substantially by 138.5 per cent, with total bids received clocking 41.56 against the KSh 30.00 billion offered.
- CBK, as the government’s fiscal agent, accepted bids worth KSh 30.17 billion which represents a 72.6 percent acceptance rate.
The weighted average yield of accepted bids stood at 18.1645% for the FXD1/2023/005 and 16.3924 percent for the FXD1/2023/010.
The government, in the month of June, was looking to raise a total of KSh 60 billion through reopening of four bonds earmarked for budgetary support.
Bidding for the first two papers, FXD1/2023/002 and FXD1/2024/003, closed on 5th June 2024. The paper experienced marginal oversubscription of 109.5 percent, with total bids received clocking KSh 32.84 billion against the 30 billion offered. The CBK accepted bids worth KSh 30.88 billion representing a 94.0 percent acceptance rate.
The government raised a total of KSh 61.05 billion in the June auction.
Investors have been buzzed with the high interest rates the government currently offers. However, with the current contracted inflation closer to the 5.0% midpoint, muted sovereign defaults and reduced budget deficit target, the apex bank pencils lower interest rates.
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