The Monetary Policy Committee (MPC) of the Central Bank of Kenya met yesterday and decided to raise the Central Bank Rate (CBR) by 50bps to 13.00%. The MPC came to this decision because the overall inflation remained sticky in the upper bound of their target range with all the key components of inflation increasing in January. The MPC also noted that there was continued pressure on the exchange rate and as a result, some further tightening was needed to stabilize prices. Attached is the MPC Press Statement for more details on this. In addition, below is a link to the CBK Governor’s MPC press briefing held earlier this morning: https://www.youtube.com/watch?v=CS-ha1wL2EQ
For your trades for the day ahead, 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
16.80
16.50
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
16.00
15.75
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
15.00
14.50
0.00
IFB1/2020/6 (IFB19)
May-26
14.50
13.75
0.00
IFB1/2020/11 (IFB20)
Aug-31
15.50
15.00
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
15.75
15.25
0.00
IFB1/2023/7 (IFB29)
Jun-30
17.00
16.30
0.00
IFB1/2023/6.5 (IFB30)
May-30
17.40
17.10
0.05
Key Interest Rates
Mov (bps)
O/N Interbank
13.3243%
-1.33
91 Day T-bill
16.3747%
8.44
182 Day T-bill
16.5058%
13.02
364 Day T-bill
16.6801%
15.76
Central Bank Rate (CBR)
13.00%
50.00
Inflation
6.90%
30.00
Attached are the bond positions available today, the MPC Press Release Statement and the IFB1/2024/8.5Yr Bond Prospectus.
