[quote=snipermnoma]So 80B was the bids received for 30B offered. Where will the excess money be channeled to? Stocks?

https://www.centralbank....-results/lates-resultts[/quote]


It gives us hope. Some investors current position is reading negative. At least a rally will rescue precarious positions.

Just opened my CBK CDSC account, Wish to start trading next week for 182 T-bills. Best bet for a newbie like me is to bid for non competitive - have about 1M.
However, am asking for some tips & tricks for competitive bidding. If am to bid next week, what's the best rate % to bid? Been following bid results and noticed over 80% of investors go for competitive bids even with apparent subscription.

Checked today's results for last week, 182 day closed at 10.137%.

Thanks for your help.

Stanchart is another bank apparently you cant settle for a bond trading in the secondary market as a retail client.

This month the Central Bank of Kenya offered 2 and 15 year Treasury Bonds for a total amount of up to Kshs 30 Billion. The total number of bids received was 777 amounting to Kshs 34.70 Billion and 632 amounting to Kshs 16.11 Billion for the 2 year and 15 year bonds respectively. The Weighted average rate for successful bids was 11.508% for the 2-year Bond and 14.335% for the 15-year Bond.

https://www.centralbank....d-results/lates-resultts

any hope for another infrastructure bond this year?

We might see 1 more before the end of the year...

Let them give something tangible for IFR, kitu kama 15%.

This is the thread to watch now.

Dear All,

I attended a Bond Market Stakeholders Meeting at the Central Bank chaired by the Deputy Governor yesterday afternoon.

Key highlights were as follows:

Monthly Update

· Oversubscriptions for Treasury Bill issues was noted
· Treasury Bill rates increased in August
· There has been a decline in interest rates post-assent of the Banking (Amendment) Act by the President on 24th August 2016
· During the last Treasury Bond Auction, CBK accepted Kshs 18.3 bn out of Kshs 26.3 bn received (Kshs 25 bn was offered) due to aggressive bidding
· There was improvement (4.7%) in secondary bond market turnover in August (Kshs 18.64 bn vs 17.8 bn in July)
· Yield curve shifted upwards at the short end
· Outstanding debt is Kshs 1,771.23 bn in the following proportions: T-Bills (33.8%): T-Bonds (66.2%). The desired threshold is 30:70 (TBills/TBonds)
· Average maturity of Government Securities is 4.3 years and 7 years for Bonds only
· Cumulative borrowing for the fiscal year is Kshs 31.33 bn against annual cumulative target of Kshs 225.3 bn, so the new borrowing requirement is Kshs 193.97 bn

· The DG emphasized that CBK remains focused on ensuring predictability, stability and progress in the bond market and requested the input of participants regarding an indicative (theoretical) yield curve and share with the CBK team before the next meeting

Bond Proposal

· The draft quarterly debt issuance calendar has been withdrawn (please see my meeting notes dated 3rd August, which cited lack of consultation prior to circulation)
· The bond proposal for September is as follows:
o 5-year & 20-year bond
o Issue date: 20th September 2016
o Settlement date: 26th September
o Offer amount: Kshs 25 bn (Green Shoe Option of Kshs 10 bn)
o Coupon: CBK to determine

Market Developments
· There are currently 2 working committees on Capital Markets and Government Debt Management working on the following issues:
1. M-AKIBA
2. Treasury Mobile Direct (TMD)
3. Internet Banking
4. Debt Issuance Calendar
5. OTC Market
6. Short-selling (NB: not for currencies, in view of recent experiences with Nigeria, South Africa and Zambia)
· Target timelines for implementation of these initiatives is June 2017, after which Primary Dealership will be addressed
· The status of the Treasury Single account will be addressed at the next meeting, during which the Director of Banking at CBK will be in attendance to shed more light.

AOB
· With regard to the operationalization of the Banking (Amendment)Act 2015, the DG stated that it was not the responsibility of the CBK to operationalize the law so nobody should expect the CBK to issue the guidelines.