CBK to sell 5-year, 20-year bonds this month

The Central Bank of Kenya (CBK) said it would sell re-opened five-year and 20-year Treasury bonds in January worth a total of Sh20 billion ($219.7 million). The bonds will be on sale between January 9 and 20, ahead of their auction on January 21, the bank said in a statement yesterday.

At the last auction of a five-year bond in August, its weighted average yield fell to 11.126 per cent from 11.934 per cent. At the last sale of a 20-year bond in June, its weighted average yield rose to 13.357 per cent from 12.981 per cent in May 2013. Meanwhile, CBK  says in market to mop up Sh9 billion. The bank of last resort says it planned to mop up Sh9 billion in excess liquidity from the money markets using repurchase agreements, or repos. Mopping up excess liquidity makes it more costly to hold dollars, which partly lends support to the shilling.