Nairobi, May 29 -- The Central Bank of Kenya (CBK) has mopped a further Sh27.2 billion from the third auction of May's three-year bond.

The second tap sale of the paper which closed on Friday had an equal value of bids to acceptance and beat the advertised Sh20 billion value.

Investors in the bond are expected to earn a return of 14.228 percent which represents the allocated average rate for accepted bids and the paper's coupon rate at the primary auction.

The overperformance of the tap sale aligns with CBK's bet on investors preferring shorter-dated securities amidst a rising interest rate environment which would expose buyers of government securities to mark-to-market losses on longer-tenured bonds.

The double tap sale had already p...