Treasury has taken a further KSh 23.9 billion from a second-round sale of Treasury Bonds in March 2022.
This is to take its cumulative flows from bonds in March to KSh42.4 billion after taking KSh18.5 billion from the primary auction.
The 5 year T-Bond received bids worth KSh 3.9 billion while KSh 3.8 billion was accepted at the tap sale. The 15 year T-Bond received bids worth KSh 15.6 billion with the state fiscal agent accepting KSh 14.7 billion. The 25 year T-Bond received bids worth KSh 5.394 billion while KSh 5.373 billion was accepted at this tap sale.
The coupon rate for the 5 year, 15 year and 25 year T-bonds was 11.277%, 12.756% and 13.924% respectively.
Treasury failed to hit its target of raising KSh 50 billion, with the second auction also failing to gather abundant investor bids.
Bids for the tap sale stood at KSh 24.9 billion against a target of KSh 31.5 billion. For instance, bids for the tap sale stood at KSh24.9 billion against a target of KSh 31.5 billion to mirror the continued tightening of liquidity in the money markets this month.
Investor bids were concentrated on the re-opened 15-year paper, which offered a premium to its coupon rate. The allocated average rate of accepted bids sat at 13.732 per cent against a 12.756 per cent coupon rate.
Bids on the 15-year paper stood at KSh14.7 billion compared to KSh 5.4 billion and KSh 3.8 billion for the re-opened 25 and 5-year papers, respectively, which had a relatively lower return.
Treasury was widely expected to offer the tap-sale, having left KSh22.4 billion on the table in the primary auction after a heavy bids rejection by CBK as it fought off aggressive investor bids.
The CBK, Treasury’s agent, is expected to return to the treasury bonds market in April.