Treasury goes for Ksh.50 billion in November bonds

The National Treasury is seeking to tap Ksh.50 billion from November Treasury bonds which opened to investor bids this week.

The bonds include a re-opened 20-year bond whose term to maturity stands at 17.5 years and a new five year issue.

The pair of bonds are expected to remain on offer to investors until November 9.

The Central Bank of Kenya (CBK) which represents the dealing entity for the fiscal agent will be hoping to rope in yields of 12.873 per cent for the longer dated paper while the shorter timed Treasury will have a market determined rate of return.

The Treasury will be hoping to see heavy appetites by investors for government securities stick to meet the Ksh.50 billion target.

In the 2021/22 fiscal year, Treasury has surpassed its borrowing target in all but one issue which closed earlier this month as liquidity in the financial markets tapered to deny government its desired outcome.

Uncertainity surrounding the trend of economic recovery in the post COVID-19 pandemic has seen investors in government securities who mainly comprise of banks and pension funds, pack their money in the Treasury as a low-risk investment strategy.