We have a day off tomorrow as the country celebrates Huduma Day. The week will therefore be slightly shorter even with an auction coming up when we resume on Wednesday. With that in mind, my expectation for this month’s auction is below:
FXD1/2023/2Yr: 18.30% - 18.40% range
FXD1/2023/5Yr: 18.70% - 18.80% range
The CBK has hinted at mitigating the push for higher rates by the market and this auction presents an opportunity for them to signal as much. Hopefully this is the case and the ranges above turn out to be over-ambitious.
Attached is the bond prospectus for any information required.
For your trading activities for the day and 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 enjoy the break tomorrow!
Below are the two-way quotes for the benchmark tenors:
Indicative Two-Way Quotes - Benchmark Tenors
Benchmark Tenor
Bid (%)
Offer (%)
Mov (t-t0)%
1Yr
15.40
15.10
0.00
2Yr
17.45
17.30
0.00
5yr
18.10
17.90
0.00
10yr
17.00
16.50
0.00
15yr
17.00
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
13.50
13.00
0.00
IFB1/2016/9 (IFB10)
May-25
13.50
13.00
0.00
IFB1/2015/12 (IFB8)
Mar-27
14.00
13.00
0.00
IFB1/2017/12 (IFB12)
Feb-29
15.00
14.00
0.00
IFB1/2016/15 (IFB11)
Oct-31
15.00
14.00
0.00
IFB1/2018/15 (IFB14)
Jan-33
15.00
14.50
0.00
IFB1/2018/20 (IFB15)
Oct-38
16.00
15.00
0.00
IFB1/2019/25 (IFB16)
Feb-44
16.50
15.00
0.00
IFB1/2019/16 (IFB17)
Oct-35
16.00
15.00
0.00
IFB1/2020/9 (IFB18)
Apr-29
14.50
14.00
0.00
IFB1/2020/6 (IFB19)
May-26
13.00
12.00
0.00
IFB1/2020/11 (IFB20)
Aug-31
15.75
15.00
0.00
IFB1/2021/16 (IFB21)
Jan-37
15.75
15.00
0.00
IFB1/2021/18 (IFB22)
Mar-39
15.70
15.00
0.00
IFB1/2021/21 (IFB23)
Aug-42
16.50
15.30
0.00
IFB1/2022/19 (IFB24)
Jan-41
15.50
15.00
0.00
IFB1/2022/18 (IFB25)
May-40
15.80
15.00
0.00
IFB1/2022/14 (IFB26)
Oct-36
16.00
15.00
0.00
IFB1/2022/6 (IFB27)
Nov-28
13.30
13.20
0.00
IFB1/2023/17 (IFB28)
Feb-40
15.90
15.50
0.00
IFB1/2023/7 (IFB29)
Jun-30
16.00
15.75
0.05
Key Interest Rates
Mov (bps)
O/N Interbank
11.9788%
4.54
91 Day T-bill
14.8734%
5.28
182 Day T-bill
14.9778%
2.79
364 Day T-bill
15.1867%
13.23
Central Bank Rate (CBR)
10.50%
0.00
Inflation
6.80%
10.00
Attached are the bond positions available today, the NSE Implied Yields, the CBK Weekly Report and the bond auction prospectus for October 2023.
