First weekend of August coming up, please do behave yourselves. The T-bill auction saw the market meet CBK’s KES 24Bn target as bids totaled KES 24.405Bn, heavily skewed towards the shorter T-bill options. The Central Bank, in line with their push to lower their borrowing costs, accepted KES 23.011Bn of the bids submitted. Attached are the results in full for your perusal. The inflation data for July 2024 has been attached and you will find that the KNBS has brought us a new and more colourful presentation of the data. Overall year-on-year (annual) inflation rate as measured by the Consumer Price Index (CPI) was 4.3% for July 2024, a drop of 20bps from May 2024. Below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting!
Below are the two-way quotes for the benchmark tenors:
Indicative Two-Way Quotes - Benchmark Tenors
Benchmark Tenor
Bid (%)
Offer (%)
Mov (t-t0)%
1Yr
17.50
17.00
0.00
2Yr
18.00
17.70
0.00
5yr
18.50
18.00
0.00
10yr
16.50
16.00
0.00
15yr
16.50
16.00
0.00
20yr
16.50
16.00
0.00
25yr
16.50
16.00
0.00
Below are details of the two-way quotes for the infrastructure bonds and the key rates:
Indicative Two-Way Quotes - IFB Series
IFB series
Maturity
Bid (%)
Offer (%)
Mov (t-t0)%
IFB1/2017/7 (IFB13)
Nov-24
15.25
15.00
0.00
IFB1/2016/9 (IFB10)
May-25
15.25
15.00
0.00
IFB1/2015/12 (IFB8)
Mar-27
15.50
15.00
0.00
IFB1/2017/12 (IFB12)
Feb-29
16.00
15.00
0.00
IFB1/2016/15 (IFB11)
Oct-31
16.00
15.50
0.00
IFB1/2018/15 (IFB14)
Jan-33
15.50
15.00
0.00
IFB1/2018/20 (IFB15)
Oct-38
16.50
16.00
0.00
IFB1/2019/25 (IFB16)
Feb-44
16.50
16.00
0.00
IFB1/2019/16 (IFB17)
Oct-35
15.50
15.20
0.00
IFB1/2020/9 (IFB18)
Apr-29
16.50
16.00
0.00
IFB1/2020/6 (IFB19)
May-26
16.50
16.00
0.00
IFB1/2020/11 (IFB20)
Aug-31
17.05
16.00
0.00
IFB1/2021/16 (IFB21)
Jan-37
15.80
15.50
0.00
IFB1/2021/18 (IFB22)
Mar-39
16.50
16.00
0.00
IFB1/2021/21 (IFB23)
Aug-42
16.50
16.00
0.00
IFB1/2022/19 (IFB24)
Jan-41
17.30
16.00
0.00
IFB1/2022/18 (IFB25)
May-40
16.60
16.00
0.00
IFB1/2022/14 (IFB26)
Oct-36
16.60
16.00
0.00
IFB1/2022/6 (IFB27)
Nov-28
16.50
16.00
0.00
IFB1/2023/17 (IFB28)
Feb-40
17.30
16.00
0.00
IFB1/2023/7 (IFB29)
Jun-30
16.90
16.20
0.00
IFB1/2023/6.5 (IFB30)
May-30
18.60
17.90
0.00
IFB1/2024/8.5 (IFB31)
Aug-32
18.60
18.40
0.03
Key Interest Rates
Mov (bps)
O/N Interbank
13.1918%
0.74
91 Day T-bill
15.9884%
-1.16
182 Day T-bill
16.8502%
-0.04
364 Day T-bill
16.9206%
-0.06
Central Bank Rate (CBR)
13.00%
0.00
Inflation
4.30%
-20.00
Attached are the bond positions available today, inflation data for July 2024, the T-bill auction results for this week and the August bond auction prospectus.
