In contrast, yields on Kenya’s six outstanding Eurobonds rose sharply last week. The KENINT 2034 recorded the highest increase, 52.80 basis points to 9.769 per cent, followed by the KENINT 2031, which rose by 48.80 basis points to 9.918 per cent. The average week-on-week yield increase across the Eurobonds was 44.13 basis points
Interest rates on Treasury bills have dropped to levels last seen in April 2023, with the 91-day paper falling into the single-digit territory at 9.954 per cent. This decline follows the Central Bank of Kenya’s (CBK) continuation of its monetary easing cycle, which was marked by a reduction in the benchmark rate to 11.25 per cent in December.
The latest Treasury bill auction saw an under subscription, with an overall subscription rate of 54.49 per cent, down from 69.17 per cent in the previous week. Investors placed bids worth Ksh 13.07 billion, of which Ksh 13.04 billion was accepted, representing an acceptance rate of 99.9 per cent.
Yields on the 364-day paper dropped to 11.537 per cent, while the 182-day bill recorded a slight uptick of 2.01 basis points to close at 10.021 per cent. “The falling rates on Treasury bills offer a significant reprieve to the government by reducing borrowing costs and easing the financing of bond and Treasury bill maturities,” noted a report by Mwango Capital.
In the bond market, the CBK has issued a prospectus for re-opened 15-year and 25-year fixed-coupon Treasury bonds, targeting Ksh 30 billion. The sale period runs from December 13, 2024, to January 15, 2025.
In contrast, yields on Kenya’s six outstanding Eurobonds rose sharply last week. The KENINT 2034 recorded the highest increase, 52.80 basis points to 9.769 per cent, followed by the KENINT 2031, which rose by 48.80 basis points to 9.918 per cent. The average week-on-week yield increase across the Eurobonds was 44.13 basis points.
