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Investors go for longer term bond in hunt for yields
Investors have been keen on locking in any bond offering a relatively high coupon amid falling interest rates, regardless of tenor, as general interest rates in the fixed income market continue to fall.
Treasury bond investors shunned the reopened 30-year paper in the dual tranche December auction, opting for the 25-year bond that pays higher annual interest.
In the sale that targeted Sh40 billion, the Central Bank of Kenya (CBK) reopened a 25-year bond that was first sold in May 2021, at a coupon of 13.92 percent, and a 30-year bond first sold in February 2011 that pays annual interest of 12 percent.
