Treasury misses target again in latest bond sale

The National Treasury building in Nairobi on Sunday, May 24, 2020. PHOTO | DENNIS ONSONGO | NMG

The Treasury’s borrowing struggles in the domestic market continued in this month’s bond sale, which fell Sh11 billion short of target as the Central Bank of Kenya continued to spurn expensive bids from investors.

Banks have also been wary of taking on new bonds due to valuation losses on their holdings when secondary market yields are going up. Bond prices or valuations fall when yields rise.

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