The CBK has in recent months reopened long-term bonds that carry annual interest of between 12.9 and 14.2 percent.
By
Charles Mwaniki
Business Reporter
Nation Media Group
Investors have been denied a premium return on the first infrastructure bond issuance in a year after the Central Bank of Kenya’s (CBK) reopened papers that rank among the lowest in returns in the market.
Infrastructure bonds tend to be popular with investors due to their tax-free status, making them a useful tool for the Treasury…
The CBK has been issuing discounts to investors in long-term bonds in a move that effectively raises their returns to reflect the…
Reopened bonds normally come with an existing coupon or actual interest rate that was set when the bonds were floated for the…
Short-term government securities yields continued to rise as investors sought compensation for higher inflation.
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…
Bond prices and yields (the interest rates) have an inverse relationship where the cost of purchasing a bond edge higher when…
