The new 3Yr bond, FXD1/2023/3Yr, closes tomorrow. As we prepare our bids, below are my expectations:
Average: 13.90% - 13.95% range
Subscription: Bid volumes to reach the KES 20Bn target set by the CBK
To get this new week going, 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 best wishes for the auction ahead!
Below are the two-way quotes for the benchmark tenors:
Indicative Two-Way Quotes - Benchmark Tenors
Benchmark Tenor
Bid (%)
Offer (%)
Mov (t-t0)%
1Yr
11.50
11.00
0.00
2Yr
13.50
13.10
0.00
5yr
14.00
13.65
0.00
10yr
14.30
14.10
0.00
15yr
14.60
14.30
0.20
20yr
14.75
14.30
0.30
25yr
14.75
14.50
0.15
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
13.20
12.70
0.00
IFB1/2016/9 (IFB10)
May-25
13.20
13.00
0.00
IFB1/2015/12 (IFB8)
Mar-27
13.30
13.00
0.00
IFB1/2017/12 (IFB12)
Feb-29
13.80
13.00
0.00
IFB1/2016/15 (IFB11)
Oct-31
14.00
13.00
0.00
IFB1/2018/15 (IFB14)
Jan-33
14.20
13.80
0.00
IFB1/2018/20 (IFB15)
Oct-38
14.40
14.00
0.00
IFB1/2019/25 (IFB16)
Feb-44
14.50
14.00
0.00
IFB1/2019/16 (IFB17)
Oct-35
14.20
13.80
0.00
IFB1/2020/9 (IFB18)
Apr-29
13.20
12.70
0.00
IFB1/2020/6 (IFB19)
May-26
12.30
12.00
0.00
IFB1/2020/11 (IFB20)
Aug-31
14.10
13.90
0.00
IFB1/2021/16 (IFB21)
Jan-37
14.00
13.60
0.00
IFB1/2021/18 (IFB22)
Mar-39
14.00
13.60
0.00
IFB1/2021/21 (IFB23)
Aug-42
14.20
13.80
0.00
IFB1/2022/19 (IFB24)
Jan-41
14.00
13.50
0.00
IFB1/2022/18 (IFB25)
May-40
14.00
13.70
0.00
IFB1/2022/14 (IFB26)
Oct-36
14.00
13.70
0.00
IFB1/2022/6 (IFB27)
Nov-28
13.40
13.20
0.00
IFB1/2023/17 (IFB28)
Feb-40
14.40
14.35
0.00
Key Interest Rates
Mov (bps)
O/N Interbank
9.8271%
9.90
91 Day T-bill
10.318%
4.30
182 Day T-bill
10.678%
16.70
364 Day T-bill
11.170%
4.60
Central Bank Rate (CBR)
9.50%
75.00
Inflation
7.90%
-129.00
Attached are the bond positions available today, the NSE Implied Yields, the CBK Weekly Report and the FXD1/2023/3Yr Bond Prospectus.
