A dismal showing for the FXD1/2023/2Yr Tap Sale as only KES 487.50M went in, a bit short of the KES 20Bn target set by the Central Bank. The T-Bill auction however was oversubscribed showing the market’s preference for the T-Bills. Given the recent protests in the country, there has been a shift in sentiment as offshore selling has pushed up rates especially in the infrastructure bond space. In my opinion, the Tap Sale of the FXD1/2023/2Yr performed poorly given that the T-Bill space offers the market shorter duration with rates slightly lower than the rate offered by the FXD1/2023/2Yr Tap Sale, in a market where the push for higher rates is currently in play. Attached are the results of both the FXD1/2023/2Yr Tap Sale and the T-Bill auction for your perusal and comparison. 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
17.00
16.85
0.00
2Yr
17.50
17.00
0.00
5yr
18.00
17.50
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
17.00
16.50
0.00
IFB1/2024/8.5 (IFB31)
Aug-32
18.00
17.40
0.00
Key Interest Rates
Mov (bps)
O/N Interbank
13.2559%
-7.23
91 Day T-bill
15.9868%
0.98
182 Day T-bill
16.7951%
3.15
364 Day T-bill
16.8299%
3.88
Central Bank Rate (CBR)
13.00%
0.00
Inflation
4.60%
-50.00
Attached are the bond positions available today, the T-Bill auction results for this week, FXD1/2023/2Yr Tap Sale Prospectus and FXD1/2008/20Yr & FXD1/2024/10Yr Bond Auction Prospectus.
