The sale period of the re-opened FXD1/2023/2Yr (1.4 years) closes this Wednesday. My expectations for the auction are as follows:
Average: 17.10% – 17.30%, with the cut-off coming in 20bps away from the average
Subscription: Oversubscription anticipated. Given last week’s T-bill results, rates in the short end space may begin their downward trajectory, making this auction all the more attractive
Updates will be made as the auction date approaches. Attached is the prospectus for any additional information required
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 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
17.50
17.10
0.00
2Yr
18.30
18.00
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
15.75
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
16.50
16.00
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
16.70
16.50
0.00
IFB1/2024/8.5 (IFB31)
Aug-32
16.70
16.55
0.00
Key Interest Rates
Mov (bps)
O/N Interbank
13.1875%
-26.35
91 Day T-bill
15.7330%
-99.13
182 Day T-bill
16.8684%
-0.54
364 Day T-bill
16.5310%
-45.88
Central Bank Rate (CBR)
13.00%
0.00
Inflation
5.70%
-60.00
Attached are the bond positions available today, the NSE Implied Yields, the CBK Weekly Report and the FXD1/2023/2Yr (Re-opened) Bond Auction Prospectus.
