Treasury goes for Ksh.50 billion from March bonds

The National Treasury will be seeking Ksh.50 billion from bonds next month with the Central Bank of Kenya (CBK) opening sales to three re-opened bonds on Thursday.

The triple-bonds with tenures of 4.7, 12.9 and 24.2 years will be open for auction by investors until March 8.

The exchequer will be looking to follow success from its infrastructure bond issues earlier this month which fetched Ksh.98.6 billion in proceeds.

Subscriptions to the March auction are expected to find anchoring from sustained appetites for government debt instruments by investors.

At the same time, the bond auction will find support from ample liquidity in the money markets.

For instance, the CBK left Ksh.33.6 billion on the table at the close of the infrastructure bond auction.

Meanwhile, Kenya Mortgage Refinancing Company (KMRC) corporate bond was nearly five times oversubscribed after investors put in bids totalling Ksh.8.1 billion against a target of just Ksh.1.4 billion.

The CBK will be seeking to keep yields on bids around the three re-opened bonds at 11.227 per cent, 12.576 per cent and 13.924 per cent respectively.