Bond auctions underperform amid investor-CBK interest rate standoff

Treasury

The National Treasury building in Nairobi. 

Photo credit: File I Nation Media Group

The Treasury raised just Sh7.9 billion from sales of government securities this week out of a target of Sh43 billion, weighed down by investor apathy and rejection of expensive bids by the Central Bank of Kenya (CBK).

The sales of Treasury bills and a tap sale of September’s bond issue were expected to raise healthy demand due to the high-interest rates on offer, but investor bids fell well below target.

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