I hope your day and weekend has an 11/10 rating like today’s date.
Back to market related matters. The bond auction results for the reopened FXD1/2016/10Yr & FXD1/2022/10Yr are attached for your perusal. The Central Bank stuck close to their KES 30Bn target despite the auction being significantly oversubscribed. In my opinion, this points to a change in tack from the CBK where signaling for lower rates is taking precedence to locking in whatever the market offers. This week’s T-bill auction results have been attached as well. Significant rejections are present here as the CBK strengthens their signaling for lower rates. For your trading activities ahead, below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting!
**Links to the attachments to be found below this note
Below are the two-way quotes for the benchmark tenors:
Indicative Two-Way Quotes - Benchmark Tenors
Benchmark Tenor
Bid (%)
Offer (%)
Mov (t-t0)%
1Yr
16.50
16.20
-0.10
2Yr
17.00
16.70
-0.20
5yr
17.50
17.00
-0.25
10yr
17.00
16.50
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
15.50
15.00
0.00
IFB1/2016/9 (IFB10)
May-25
16.00
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
16.50
16.00
0.00
IFB1/2018/15 (IFB14)
Jan-33
16.50
16.00
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
16.50
16.20
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
16.50
16.00
0.00
IFB1/2021/16 (IFB21)
Jan-37
16.50
16.20
0.00
IFB1/2021/18 (IFB22)
Mar-39
16.50
16.00
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
16.50
16.00
0.00
IFB1/2023/17 (IFB28)
Feb-40
15.90
15.60
0.00
IFB1/2023/7 (IFB29)
Jun-30
15.90
15.50
0.00
IFB1/2023/6.5 (IFB30)
May-30
15.85
15.55
0.05
IFB1/2024/8.5 (IFB31)
Aug-32
15.90
15.70
0.10
Key Interest Rates
Mov (bps)
O/N Interbank
12.0881%
-20.23
91 Day T-bill
14.9900%
-69.55
182 Day T-bill
16.0950%
-40.49
364 Day T-bill
16.3383%
-39.08
Central Bank Rate (CBR)
12.00%
-75.00
Inflation
3.60%
-80.00
Below are the links to the Bond positions available today, the T-bill auction results and the FXD1/2016/10Yr & FXD1/2022/10Yr auction results.
