Bond investors demanded more than 18 percent in interest in the auction for a reopened five-year bond whose sale closed last week, forcing the Central Bank of Kenya (CBK) to leave Sh33.9 billion worth of bids on the table.
The standoff over rates came even as the CBK said the Treasury has cut the domestic borrowing target for the current fiscal year from Sh586.5 billion to Sh316 billion, effectively signalling to the market an easing of the State’s high demand for domestic cash that has driven rates upwards in recent sales.
