Central Bank of Kenya(CBK) collected KSh 52 Billion during the Treasury Bond Auction of 2021, where the two re-opened fifteen-year and twenty-five year Treasury Bonds issued lesser bids against an advertised amount of KSh 60.0 Billion, representing a performance rate of 92.5%.
Total bids received were worth KSh 55.5 Billion, made up of KSh 41.4 Billion in competitive bids and KSh 10.6 Billion in non-competitive bids.
The coupon rate for the two 15-year T-Bonds is 11.250% and 12.340% respectively while that of the 25 year T-Bond is 13.924%. Proceeds from this sale with be used by National Treasury for new borrowings/net loan repayments.
Specific features of the November 2021 Treasury Bond tap sale will be provided by the CBK in a prospectus before the due date.
CBK also accepted KSh 9.8 Billion from the Treasury Bills Auction against an advertised offer of KSh 24 Billion, representing a performance rate of 40.9%.
The most attractive instrument was the 91-days Treasury Bill which received bids worth KSh 3.4 Billion out of KSh 4 Billion on offer, a performance rate of 85.56% with CBK accepting the entire amount and offering investors a return of 6.935%.
The 182-day Treasury Bill attracted bids worth KSh 3.961 Billion out of KSh 10 Billion on offer, a performance of 39.62% with the state fiscal agent accepting the entire amount and offering a return of 7.316%.
The 364-day Treasury Bill was the least attractive with bids worth KSh 2.438 Billion received out of KSh 10 Billion on offer with CBK accepting 2.392 Billion, a performance rate of 24.39%.
CBK interest rates
Interest rates on the 91-day, 182-day and 364-day, Treasury bills were 6.895%, 7.282% and 7.949% respectively at the previous auction.
Bids closure and the next auction is 18th October 2021 with results to be announced on 19th October 2021.