Sharp Daily
No Result
View All Result
Thursday, October 30, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

Kevin Cheruiyot by Kevin Cheruiyot
June 19, 2025
in Investments, News
Reading Time: 1 min read

The Central Bank of Kenya (CBK) has raised KES 71.6 billion through a reopened Treasury bond auction dated June 23, 2025, significantly surpassing its KES 50.0 billion target. The strong subscription highlights a growing investor shift toward long-term government securities amid declining short-term yields following the lowering of Central Bank Rates (CBR) rates by CBK by 25.0 bps to 9.75% in June 2025 from 10.00% in April 2025.

The dual-tranche offering comprised the 15-Year Fixed Coupon Treasury Bond (FXD1/2020/015) and the 30-Year Savings Development Bond (SDB1/2011/030), which now carry tenors to maturity of 9.7 years and 15.7 years, respectively. The bonds bear fixed coupon rates of 12.8% and 12.0%.

Investor demand was robust, with total bids amounting to KES 101.4 billion translating to a subscription rate of 202.7%. The government accepted KES 71.64 billion, representing an acceptance rate of 70.7%.

The weighted average yields for successful bids came in at 13.5% for FXD1/2020/015 and 14.0% for SDB1/2011/030. These were notably higher than the 12.5% and 13.8% yields recorded during their last reopening in September 2020 and September 2014, respectively.

RELATEDPOSTS

How Kenya’s bond market boom could benefit everyday investors

October 29, 2025

Kenya Inflation 2025: What Steady Prices Mean for Your Savings and Best Investment Options

October 29, 2025

With inflation easing to 3.8% as of May 2025, the real returns on the reopened bonds are particularly attractive estimated at 9.7% for FXD1/2020/015 and 10.2% for SDB1/2011/030. When adjusted for tax, these bonds offer tax-equivalent yields of approximately 14.3% and 14.8%, respectively, with the 10.0% withholding tax applied to long-term instruments compared to 15.0% on shorter-term ones.

The outcome of this auction outlined a shift in investor preference toward longer-dated securities, driven by compelling real returns, higher nominal yields, and easing liquidity conditions in the market.

Previous Post

It’s Parliament vs Treasury on the battle over zero-rated essentials.

Next Post

Saving vs Investing

Kevin Cheruiyot

Kevin Cheruiyot

Related Posts

Analysis

How Kenya’s bond market boom could benefit everyday investors

October 29, 2025
Analysis

Global or local? Why Kenyan professionals should consider domestic investments

October 29, 2025
News

Who Should Invest in a Money Market Fund

October 29, 2025
Investments

EABL to redeem KES 11.0 bn bond early to cut financing costs

October 28, 2025
Education

Money Market Funds Explained: A Beginner’s Guide (Kenya Edition)

October 29, 2025
Analysis

From paycheck to progress: how I learned to make every salary count.

October 29, 2025

LATEST STORIES

How Kenya’s bond market boom could benefit everyday investors

October 29, 2025

Kenya Inflation 2025: What Steady Prices Mean for Your Savings and Best Investment Options

October 29, 2025

CIC insurance and Equity bank fined KES 1.2 bn for holding unclaimed assets in Kenya

October 29, 2025

Building trust and convenience in modern finance

October 29, 2025

Global or local? Why Kenyan professionals should consider domestic investments

October 29, 2025

Who Should Invest in a Money Market Fund

October 29, 2025

EABL to redeem KES 11.0 bn bond early to cut financing costs

October 28, 2025

Money Market Funds Explained: A Beginner’s Guide (Kenya Edition)

October 29, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024