The Treasury is betting on raising Sh10 billion from the market through a 10-year bond, despite signs that there is a cash crunch and low appetite for long-term debt. The Central Bank of Kenya , acting on behalf of the Treasury, said Thursday it will sell the bond from Wednesday and close on January 21 . The fixed-coupon bond could, however, attract low investor interest as buyers reserve cash to participate in the upcoming Eurobond offer. READ: Treasury sets end month for sale of Sh172bn Eurobond "I think the bond may not receive much interest because the current focus is on the expected sovereign bond and there is some tightness in the market," said Eric Munywoki , research analyst at Old Mutual Securities . When a 10-year bond was floated last August, it raised only Sh522 million from an offer of Sh20 billion. Investors preferred a two-year bond which was floated at the same time and which attracted nearly Sh18 billion in bids. Mr Munywoki said the bond could attract bids seeking between 12 and 12.50 per cent in yields.
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