Rank: Elder Joined: 6/23/2009 Posts: 14,320 Location: nairobi
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obiero wrote:obiero wrote:tom_boy wrote:obiero wrote:maka wrote:obiero wrote:Pesa Nane wrote:[quote=obiero][quote=maka]Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. 91, 182, 364 day bills all down.. Expect the shorter tenor to hit 6.5% by December.. As per Graham's law, the bulls at the NSE must show up shortly.. http://www.businessdaily...4800-b0eb44z/index.html[/quote] As per my predictions, the dance between banks and Government in pricing billsand bonds has begun. Banks cannot afford to flood CBK with offers! They will have to worksmart. Here we are.. Tbills approaching 7% while stocks are on mini rally Graham's law remains true http://www.businessdaily...21518-mb1uhx/index.html[/quote] GOK goes big on domestic borrowing. Am I shocked? No.. COOP, IMH, KEGN, KQ, MTNU
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