The Treasury has announced that it seeks Ksh 5 billion through a two year bond to be issued this month. The last two year bond issued was in November 2011 and the weighted average yield rose to 22.844% from 16.526% the previous month. The weighted average yield may rise even further this time round as the Treasury actively takes steps at quelling inflation even further.

The Ministry of Finance releases a monthly Statement of Revenues and Issues and has reported that it expensed Ksh 102.9 billion in public debt. This is the money spend paying coupons and redemptions on Treasury Bills and Bonds that have been issued.

Over the past two weeks the government has issued two Bills which have raised a total of Ksh 15.04 billion and on Wednesday the CBK is expecting to get Ksh 7 billion through the sale of 91 and 182-day Treasury bills at the weekly auction.

Should the bond be successful, Treasury will have borrowed a total of Ksh 149.96 billion from the domestic market, against the Ksh 119.5 billion targeted for the 2011/2012 fiscal year which ends on June 30.