June Time
Just a quick refresher of what the CBK has in store for the market during the month of June:
- FXD1/2023/2Yr (1.2 years) & FXD1/2024/3Yr (2.6 years): KES 30Bn target set, auction date is 05-June-2024
- FXD1/2023/5Yr (4.1 years) & FXD1/2023/10Yr (8.7 years): KES 30Bn target set, auction date is 12-June-2024
As you can see above, we have the first part of the auction concluding this week with the re-opened FXD1/2023/2Yr and the FXD1/2024/3Yr being auctioned on Wednesday, 05-June-2024. Below are my initial thoughts on where these two bonds will be priced:
- FXD1/2023/2Yr: 16.90% - 17.10%
- FXD1/2023/5Yr: 17.90% - 18.10%
- Expecting an oversubscription as the market historically favours short dated FXDs at auctions.
Away from the primary auctions and to set you up for the week ahead, attached is the CBK weekly report to assist in your reading of the market while updated benchmark Yield Curve levels are ready for your perusal on the attached pricelist. I have also attached the NSE Implied Yields for the NSE’s valuations of all the treasuries. To bring it all together, below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting!
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