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Investors, CBK tussle over direction of interest rates
Investors offered the government a total of Sh50.6 billion in the sale, out of which the CBK accepted Sh42.5 billion, rejecting the balance on cost concerns
Investors pushed back against Central Bank of Kenya (CBK) efforts to bring interest rates on government debt lower in last week’s Treasury bills and bond auctions, with an eye on the recent increase in the Treasury’s domestic borrowing target.
The sale of a reopened 25-year Treasury bond which closed on Wednesday saw investors ask for a return of 13.94 percent on average, which was higher than the bond’s actual interest rate (coupon) of 13.4 percent.
