Kenya Bond Market Update: 07-Jul-2023

Published on
November 29, 2023

Saba-Saba Friday – The interest in T-bills bounced back this week, in line with an increase in the maturities due. There is a positive correlation between the maturities in play and the interest shown at the T-bill auctions. The rates across the T-bills have now crossed the 12% mark as the market continues to push for higher rates. Attached are the results in full for your perusal.

The sale period for this month’s bond auction closes on Tuesday, 11-July-2023. The CBK has re-opened the FXD1/2016/10Yr (3.2 years left) and offered a new 5Yr Bond, FXD1/2023/5Yr, in a bid to secure KES 40Bn. My expectations for this auction are as follows:

·         FXD1/2016/10Yr: average between 15.90% – 16.00%

·         FXD1/2023/5Yr: average between 16.10% - 16.20%

·         Subscription: Oversubscription

Away from the primary auction, 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, two-way quotes for the infrastructure bonds and the key rates:

Kenya Bond Updates

Attached are the bond positions available today, the T-bill auction results for this week and the bond prospectus for July 2023.

  1. Bond Positions
  2. T-bill Auction Results
  3. Bond Prospectus for July 2023