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CBK takes Sh64bn from September bonds amid high oversubscription
The reopened 30-year bond was undersubscribed with bids worth Sh8.07 billion, signalling that investors were largely unwilling to lend to the government at its coupon (interest) rate of 12 percent.
Bond investors offered the government Sh97.3 billion against a demand of Sh40 billion in an auction of reopened 20- and 25-year papers, seeking to lock in returns of up to 14.2 percent amid expectations of a decline in interest rates in the near term.
The Central Bank of Kenya (CBK) took up Sh61.44 billion of these bids, enabling the government to exceed its target of Sh60 billion from this month’s bond sale. This also included a reopened 30-year paper that was auctioned earlier on September 3.
