Kenya Bond Market Update: 15 February 2024

Published on

February 15, 2024

*|MC:SUBJECT|*

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Need 70, here is 288!

The Central Bank of Kenya definitely received more love than most of us did yesterday. In a bid to lock in KES 70Bn from the sale of a new infrastructure bond, IFB1/2024/8.5Yr, KES 288.661Bn in bids were received. The Central Bank managed to lock in KES 240.957Bn of these bids at an average rate of 18.4607%, a rate much lower than what was expected prior to the auction. Attached are these spectacular results in full for your perusal.

For you to navigate the rest of the curve, with the new bond included, 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	16.70	0.00
2Yr	18.35	18.00	0.00
5yr	18.90	18.40	0.00
10yr	17.00	16.50	0.00
15yr	16.50	16.00	0.00
20yr	16.50	16.00	0.00
25yr	16.30	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	16.00	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	14.75	14.50	0.00
IFB1/2020/6 (IFB19)	May-26	13.50	12.75	0.00
IFB1/2020/11 (IFB20)	Aug-31	17.50	16.75	0.00
IFB1/2021/16 (IFB21)	Jan-37	17.00	16.00	0.00
IFB1/2021/18 (IFB22)	Mar-39	17.00	16.00	0.00
IFB1/2021/21 (IFB23)	Aug-42	17.00	16.00	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	17.00	16.00	0.00
IFB1/2023/17 (IFB28)	Feb-40	16.50	16.00	0.00
IFB1/2023/7 (IFB29)	Jun-30	16.50	16.00	0.00
IFB1/2023/6.5 (IFB30)	May-30	17.40	17.10	0.00
IFB1/2023/8.5 (IFB31)	Aug-32	17.90	17.80	-0.55

Key Interest Rates		Mov (bps)
O/N Interbank	13.4080%	6.07
91 Day T-bill	16.5038%	12.91
182 Day T-bill	16.6331%	12.73
364 Day T-bill	16.8574%	17.73
Central Bank Rate (CBR)	13.00%	50.00
Inflation	6.90%	30.00

Attached are the bond positions available today and the IFB1/2024/8.5Yr bond auction results.

Bond Positions

RESULTS FOR IFB1/2024/8.5Yr

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Kenya Bond Market Update: 15 February 2024

Need 70, here is 288!

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