Kenya Bond Market Update: 16 July 2024

Published on

July 16, 2024

*|MC:SUBJECT|*

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Prepare those Bids (& Placards)

Busy day ahead for Kenyans as the move for change continues. Busy day as well for traders as bids for this month’s bond auction are readied for submission. My expectations remain unchanged and below is a quick refresher:

FXD1/2024/10Yr (9.7 years): average within 16.20% - 16.50%
FXD1/2008/20Yr (3.9 years): average within 18.30% - 18.50%
Subscription: Oversubscription with interest to be skewed towards the shorter FXD1/2008/20Yr

For the rest of your trading activities, below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting and picketing!

Below are the two-way quotes for the benchmark tenors:

Indicative Two-Way Quotes - Benchmark Tenors
Benchmark Tenor	Bid (%)	Offer (%)	Mov (t-t0)%
1Yr	17.20	16.85	0.00
2Yr	18.00	17.50	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	15.25	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	17.90	0.00

Key Interest Rates		Mov (bps)
O/N Interbank	13.1362%	3.45
91 Day T-bill	15.9954%	0.86
182 Day T-bill	16.8221%	2.69
364 Day T-bill	16.8795%	4.96
Central Bank Rate (CBR)	13.00%	0.00
Inflation	4.60%	-50.00

Attached are the bond positions available today and the FXD1/2024/10Yr & FXD1/2008/20Yr Bond Auction Prospectus.

Bond Positions

FXD1/2024/10Yr & FXD1/2008/20Yr Bond Auction Prospectus

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Kenya Bond Market Update: 16 July 2024

Prepare those Bids (& Placards)

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