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CBK raises Sh100bn from February bonds on massive oversubscription
Bonds are now paying a significant rate premium on Treasury bills, whose yields stood between 7.7 percent and 9.2 percent after last week’s auction, incentivising investors to go for the longer papers.
Investors offered the government Sh213.74 billion in the February 2026 Treasury bond issuance, after the latest rate cut by the Central Bank of Kenya (CBK) sparked a rush to lock in the returns of between 12.34 percent and 13.4 percent available from the reopened papers.
This is the highest volume the market has seen in bids outside of infrastructure bonds, underlining the expectations in the markets that returns from government securities will fall further in the near term after the CBK lowered its base rate to 8.75 percent from nine percent on Tuesday.
