The issues were two new benchmark tenors with five- and 20-year maturities.
But the subscription was heavily biased on the short-end paper, largely driven by the banks.
The CBK accepted bids worth Sh31.55 billion in total — Sh23.06 billion for the five-year tenor and Sh8.49 billion for the 20-year tenor.
The Treasury attracted Sh51.38 billion out of Sh40 billion offer amount in this month’s primary bond issues, recording a 128.46 per cent subscription rate.
The issues were two new benchmark tenors with five- and 20-year maturities.
But the subscription was heavily biased on the short-end paper, largely driven by the banks.
On the five-year tenor, the market weighted average rate settled was 9.5 basis points (bps) higher than the average rate.
The five-year tenor received bids worth Sh37.64 billion while the 20-year tenor received bids worth Sh13.73 billion.
The Central Bank of Kenya (CBK) accepted bids worth Sh31.55 billion in total — Sh23.06 billion for the five-year tenor and Sh8.49 billion for the 20-year tenor.
“The government is under no pressure at all in regard to its net domestic borrowing and we do not anticipate a tap sale to sap the excess cash rejected at the primary. We are thus likely to see the Treasury bill and short-end secondary turnover uplifted in the coming week,” said analysts from Genghis Capital in an email response.
The 20-year tenor yield dropped from 14.789 per cent in last month’s auction to 13.423 per cent.
The yield for the five-year tenor slightly declined from 12.694 per cent during last month’s auction to 12.394 per cent.
The Treasury had identified the two tenors for building up liquidity in the secondary market segment.
Last month’s issue which had re-openings of two medium-term tenors failed to impress with performance rate of 42.56 per cent – including the tap sale, of the amount on offer.
This was mainly due to tenor starvation in both ends of the yield spectrum that resulted in a withholding of funds from banks and the contractual savings institutions.
