By
Kepha Muiruri
Business Reporter
Nation Media Group
Returns on Treasury bills and bonds have started increasing as investors seek higher compensation to cover rising inflation, setting the stage for higher borrowing costs for the government.
The rising returns on government papers are prompting investors to start shifting assets from the Nairobi Securities Exchange (NSE), which has seen three-quarters of counters at the bourse record...
By
Kepha Muiruri
Business Reporter
Nation Media Group
Returns on Treasury bills and bonds have started increasing as investors seek higher compensation to cover rising inflation, setting the stage for higher borrowing costs for the government.

Short-term government securities yields continued to rise as investors sought compensation for higher inflation.

Returns on the shortest-dated government securities have risen since the start of April, mirroring the reversal in interest rates.

The bonds market has grown in popularity among investors with a marked increase in holdings of the securities by retailers and…

Investors poured US$1.4bn into Kenya's 91-day Treasury bills in 10 weeks, betting on higher rates and leaving the Treasury a…

The T-bill auctions have been skewed towards the 91-day paper since mid-May, as investors avoid locking in their money for long…

In the June sale, the higher yield demands were matched by price discounts of Sh2.86 and Sh5.28 per unit of Sh100 on the 15 and…