The Central Bank of Kenya (CBK) has announced the results of its reopened fourteen and seventeen-year Treasury Bonds, IFB1/2022/014 and IFB1/2023/017. These bonds saw strong demand, with total bids received reaching Kshs. 193.89 billion. The high level of investor participation underscores the continued confidence in government securities as a stable investment option.
Treasury Bonds Auction Results
CBK had initially offered Kshs.70 billion for these Treasury Bonds. However, due to overwhelming investor interest, the total amount of accepted bids stood at Kshs. 130.8 billion. Competitive bids accounted for Kshs. 101.6 billion, while non-competitive bids totaled Kshs. 29.18 billion. The bid-to-cover ratio of 1.48 reflects the strong demand for these securities, reinforcing their attractiveness in the investment market.
Treasury Bonds Performance and Yield
The performance rate for the fourteen-year bond stood at 133.05%, while the seventeen-year bond reached 143.95%. The market-weighted average rates were 14.0857% and 14.4161%, respectively. Accepted bids had weighted average rates of 13.9784% and 14.2806%, showcasing competitive investor participation.
The price per Kshs. 100 at average yield was 103.5012 for the fourteen-year bond and 106.9840 for the seventeen-year bond. Additionally, the coupon rates were set at 13.9380% and 14.3990%, respectively, ensuring attractive returns for investors seeking stable income from government securities.
Upcoming Treasury Bonds in March 2025
CBK has also announced the forthcoming Treasury Bonds for March 2025. The details, including tenor, amount, and coupon rates, will be disclosed in the official prospectus before issuance. Investors should stay informed and evaluate their investment options in preparation for this new offering.
The strong demand for Treasury Bonds highlights their role as a preferred investment choice in Kenya’s financial market. These bonds are a reliable part of any investment plan because they offer good returns, a competitive bidding process, and safe investments. The CBK’s latest issuance reinforces investor trust and sets the stage for further opportunities in the bond market.
As the March 2025 bonds approach, market participants eagerly anticipate new prospects in the Treasury Bonds segment. Investors looking for stable and high-yielding instruments should consider the upcoming offerings as a strategic part of their financial planning.