CBK Ksh 87.8Bn Switch Auction Undersubscribed
The Central Bank of Kenya’s switch auctions offer of existing T-bills, and two-year bondholders were undersubscribed with the total received bids worth Kshs 52.9 billion against a target of 87.8 billion.
The government accepted bids worth Kshs 49.1 billion, translating to an acceptance rate of 92.8%. The coupon rate and the average market yield for the bond both came at 13.2%.
“The undersubscription…partly attributable to investors avoiding the duration risk and tightened liquidity in the money market,” said Cytonn Investments.