Kenya Bond Market Update: 09-Jun-2023

Published on
November 29, 2023

Flattening Friday – The T-bill auction was oversubscribed this week with the market continuing to heavily favour the shortest T-bill, the 91D T-bill. The CBK secured KES 32.135Bn, with both the 91D and 182D rates rising significantly quicker than the 364D T-bill. This has resulted in the yield curve for the T-bills flattening as the difference in rates across the bills decreases. Attached are the results for your perusal.

The CBK has on offer the IFB1/2023/7Yr as they seek KES 60bn from its sale. Below are my expectations for how the auction will play out:

·         Bids: Bidding range of 14.90% - 15.20%

·         Average: 14.90% – 14.99%

·         Subscription: Oversubscription as a result of improved levels of liquidity in the market

·         The prospectus for this auction is attached with all the required information to facilitate your bidding process.

For your trading activities today, 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 Market

Attached are the bond positions available today, T-bill auction results for this week and the IFB1/2023/7Yr bond prospectus.

  1. Bond Positions
  2. T-bill Auction Results
  3. IFB1/2023/7Yr