Treasury adds another Ksh.20.7B from May bonds

The National Treasury has scooped an additional Ksh.20.7 billion from a secondary issue of bonds this month

This to take its total haul from Treasury bonds this month to Ksh.41 billion surpassing its initial Ksh.30 billion target.

Investors matched up the Ksh.20 billion on offer in May’s tap sale with bids of Ksh.20.9 billion from which the Central Bank of Kenya (CBK) only snubbed a partly Ksh.0.2 billion.

Further, the CBK moved back the duration of the taps sale from Wednesday next week after meeting the desired level of investor interest in just two days.

The CBK had snubbed Ksh.22.3 billion from the initial offer as it sort to tame aggressive biding by investors chasing a higher return.

Unlike the previous window, investor interests switched to the shorter-timed re-opened 15-year T-bond bidding Ksh.15.9 billion in contrast to Ksh.5 billion on the new 25-year issue.

The high acceptance rate on this month’s bond issue comes as the exchequer moves to close out its 2020-21 local borrowing program.