Short-term government securities yields continued to rise as investors sought compensation for higher inflation.
By
Charles Mwaniki
Business Reporter
Nation Media Group
Investors demanded a return of up to nine percent on Treasury bills in the latest auction despite the Central Bank of Kenya (CBK) holding its base rate at 8.75 percent, to signal that it expects inflation to moderate in the near term.
The rising returns on government papers are prompting investors to start shifting assets from the Nairobi Securities Exchange…
Returns on the shortest-dated government securities have risen since the start of April, mirroring the reversal in interest rates.
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…
Reopened bonds normally come with an existing coupon or actual interest rate that was set when the bonds were floated for the…
Bond prices and yields (the interest rates) have an inverse relationship where the cost of purchasing a bond edge higher when…
Analysts at the AIB-AXYs Africa say they expect a soft CBR increase, pushing the rate up from 8.75 to nine percent.
