Offshore investors shun T-bonds after downgrades

Moody's and Fitch Ratings downgrade of Kenya's credit score has sparked jitters among foreign investors

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Foreign investors have shunned government bonds on anxieties arising from recent sovereign ratings downgrades, trimming the interest rates on Treasury bonds amid the sale of two re-opened infrastructure bonds (IFBs) this month.

Analysts said offshore investors foreigners have cut down their stake in the February infrastructure bond, which had registered heavy offshore interest—preempting subdued interest in the August tax-free bond whose auction closes on today.

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