Browsing: undersubscription of long-term bonds

• Treasury Bonds Auction for the month of July recorded only a 2 percent subscription rate 
• The domestic bond market has faced challenges, despite the lower yields on Eurobonds
• This high yield reflects investor concerns about Kenya’s economic stability and fiscal health​

Investors have shied away from government bonds as the treasury only managed to raise 2 per cent of the Sh20 billion it had targeted in its July tap sale.

This saw the government only get Sh487.5million as the investors instead preferring to pump funds into short-term Treasury bills on expectations that interest rates will soon go up in the country.

The bonds are instruments through which the government will use to borrow from the market.

The domestic bond market has faced challenges. Despite the lower yields on Eurobonds, yields on Kenyan government bonds remain high, with 10-year bonds yielding 17.759 per cent as of early July 2024.

This high …