CBK Ksh 87.8Bn Switch Auction Undersubscribed

The Kenya National Treasury Building. Switch auction involves a transaction that exchanges securities held by investors with selected bonds.

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.



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