Kenya Bond Market Update: 04 July 2023

Published on

July 4, 2023

*|MC:SUBJECT|*

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New Month, New Primary

For this month, the CBK has put on offer a new 5Yr bond, FXD1/2023/5Yr, and re-opened the FXD1/2016/10Yr (3.2 years left) in a bid to secure KES 40Bn. Attached is the bond prospectus for all details pertaining this auction. 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 and the inflation data for the month of June 2023. To bring it all together, 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	12.50	12.00	0.20
2Yr	13.75	13.20	0.00
5yr	14.50	14.20	0.00
10yr	14.70	14.30	0.00
15yr	15.50	14.50	0.00
20yr	16.00	14.50	0.00
25yr	16.00	14.50	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	13.20	12.70	0.00
IFB1/2016/9 (IFB10)	May-25	13.20	12.60	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	14.50	14.10	0.00
IFB1/2018/20 (IFB15)	Oct-38	15.50	14.00	0.00
IFB1/2019/25 (IFB16)	Feb-44	16.00	14.00	0.00
IFB1/2019/16 (IFB17)	Oct-35	14.50	13.80	0.00
IFB1/2020/9 (IFB18)	Apr-29	13.75	13.50	0.00
IFB1/2020/6 (IFB19)	May-26	13.00	12.00	0.00
IFB1/2020/11 (IFB20)	Aug-31	14.50	14.10	0.00
IFB1/2021/16 (IFB21)	Jan-37	15.50	14.50	0.00
IFB1/2021/18 (IFB22)	Mar-39	15.50	14.50	0.00
IFB1/2021/21 (IFB23)	Aug-42	15.50	15.00	0.00
IFB1/2022/19 (IFB24)	Jan-41	15.50	14.50	0.00
IFB1/2022/18 (IFB25)	May-40	15.70	14.50	0.00
IFB1/2022/14 (IFB26)	Oct-36	15.50	14.50	0.00
IFB1/2022/6 (IFB27)	Nov-28	13.30	13.10	0.00
IFB1/2023/17 (IFB28)	Feb-40	15.50	14.50	0.00
IFB1/2023/7 (IFB29)	Jun-30	15.50	15.40	-0.20

Key Interest Rates		Mov (bps)
O/N Interbank	10.1588%	-0.94
91 Day T-bill	11.904%	11.90
182 Day T-bill	11.947%	8.40
364 Day T-bill	12.157%	22.30
Central Bank Rate (CBR)	10.50%	100.00
Inflation	7.90%	-10.00

Attached are the bond positions available today and the bond prospectus for July 2023.

Bond Positions

Bond Prospectus for July 2023

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Kenya Bond Market Update: 04 July 2023

New Month, New Primary

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