Kenya Bond Market Update: 04 April 2024

Published on
April 4, 2024
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Last Chance to Tap

 
The Tap Sale for both the FXD1/2023/5Yr and the FXD1/2024/10Yr closes today at 2.00PM. Attached is the prospectus for any additional you may require. The Monetary Policy Committee (MPC) of the Central Bank met yesterday and the following is a quick summary of the decision made. The MPC noted that its previous measures have lowered inflation, addressed the exchange rate pressures, and anchored inflationary expectations. The Committee further noted that overall inflation is expected to continue declining in the near term, supported by lower food and fuel prices, and pass-through effects of the recent exchange rate appreciation. Therefore, the MPC concluded that the current monetary policy stance will ensure that overall inflation continues to decline towards the 5.0% mid-point of the target range, and thus decided to retain the Central Bank Rate (CBR) at 13.00%. Kindly note that this summary is copy-pasted from the attached MPC Statement, in case you were wondering why I am sounding so academic. In addition to the statement attached, the CBK governor is hosting a press briefing and here is a link to the livestream for your viewing pleasure: https://www.youtube.com/watch?v=_RkuXYM5GDU
For your trading activities for the day ahead, below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting and bidding!
Below are the two-way quotes for the benchmark tenors:
 
Indicative Two-Way Quotes - Benchmark Tenors
Benchmark Tenor Bid (%) Offer (%) Mov (t-t0) %
1Yr 18.15 17.85 0.00
2Yr 18.30 18.00 0.00
5yr 18.65 18.35 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 15.75 15.50 0.00
IFB1/2016/9 (IFB10) May-25 15.85 15.75 0.00
IFB1/2015/12 (IFB8) Mar-27 14.50 14.00 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 17.50 17.20 0.00
IFB1/2020/6 (IFB19) May-26 17.50 17.10 0.00
IFB1/2020/11 (IFB20) Aug-31 17.50 17.20 0.00
IFB1/2021/16 (IFB21) Jan-37 17.00 16.50 0.00
IFB1/2021/18 (IFB22) Mar-39 17.00 16.50 0.00
IFB1/2021/21 (IFB23) Aug-42 17.00 16.50 0.00
IFB1/2022/19 (IFB24) Jan-41 17.00 16.50 0.00
IFB1/2022/18 (IFB25) May-40 17.00 16.50 0.00
IFB1/2022/14 (IFB26) Oct-36 17.00 16.50 0.00
IFB1/2022/6 (IFB27) Nov-28 17.50 17.20 0.00
IFB1/2023/17 (IFB28) Feb-40 16.50 16.00 0.00
IFB1/2023/7 (IFB29) Jun-30 16.90 16.20 0.00
IFB1/2023/6.5 (IFB30) May-30 16.80 16.65 -0.02
IFB1/2024/8.5 (IFB31) Aug-32 16.80 16.65 0.00
 
 
Key Interest Rates   Mov (bps)
O/N Interbank 13.8275% 7.69
91 Day T-bill 16.7290% -0.16
182 Day T-bill 16.8877% -2.60
364 Day T-bill 16.9899% 0.09
Central Bank Rate (CBR) 13.00% 0.00
Inflation 5.70% -60.00
Attached are the bond positions available today, the MPC Press Statement and the primary bond auction prospectus for April 2024.
Bond Positions
MPC Press Statement
Primary Bond Auction Prospectus for April 2024
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