Bid Bid Bid
The first portion of this month’s bond auction closes today. Bids must be submitted at the CBK by 2.00 P.M. The Central Bank is looking to secure KES 40Bn from the sale of the FXD1/2022/3Yr and my expectations for how this auction remains as follows:
- Average: 11.40% – 11.50%
- Cut-off: 15bps – 20bps away from where the average comes in
- Bids: expecting a wide range of bids, from a low of 11.25% to a high of 11.99%
- Subscription: oversubscription by approximately KES 10Bn – KES 20Bn
- Potential for a reject-and-tap strategy (if the CBK come in to tame market’s push for higher rates)
Below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting and bidding!
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|
| Indicative Two-Way Quotes - Benchmark Tenors |
| Benchmark Tenor |
Bid (%) |
Offer (%) |
Mov (t-t0)% |
| 1Yr |
9.90 |
9.70 |
0.00 |
| 2Yr |
10.55 |
10.20 |
0.00 |
| 5Yr |
12.00 |
11.70 |
0.00 |
| 10Yr |
12.90 |
12.60 |
0.00 |
| 15Yr |
13.80 |
13.50 |
0.00 |
| 20Yr |
13.85 |
13.80 |
0.00 |
| 25Yr |
14.00 |
13.75 |
0.00 |
|
|
| Indicative Two-Way Quotes - IFB Series |
| IFB series |
Maturity |
Bid (%) |
Offer (%) |
Mov (t-t0)% |
IFB1/2017/7
(IFB13) |
Nov-24 |
10.35 |
9.90 |
0.00 |
IFB1/2016/9
(IFB10) |
May-25 |
10.35 |
9.90 |
0.00 |
IFB1/2015/12
(IFB8) |
Mar-27 |
10.50 |
10.00 |
0.00 |
IFB1/2017/12
(IFB12) |
Feb-29 |
11.00 |
10.60 |
0.00 |
IFB1/2016/15
(IFB11) |
Oct-31 |
12.50 |
12.25 |
0.00 |
IFB1/2018/15
(IFB14) |
Jan-33 |
12.40 |
12.00 |
0.00 |
IFB1/2018/20
(IFB15) |
Oct-38 |
12.90 |
12.50 |
0.00 |
IFB1/2019/25
(IFB16) |
Feb-44 |
13.00 |
12.50 |
0.00 |
IFB1/2019/16
(IFB17) |
Oct-35 |
12.90 |
12.50 |
0.00 |
IFB1/2020/9
(IFB18) |
Apr-29 |
11.30 |
11.00 |
0.00 |
IFB1/2020/6
(IFB19) |
May-26 |
11.30 |
10.75 |
0.00 |
IFB1/2020/11
(IFB20) |
Aug-31 |
12.60 |
12.50 |
0.20 |
IFB1/2021/16
(IFB21) |
Jan-37 |
12.90 |
12.70 |
0.00 |
IFB1/2021/18
(IFB22) |
Mar-39 |
13.00 |
12.80 |
0.00 |
IFB1/2021/21
(IFB23) |
Aug-42 |
13.00 |
12.80 |
0.00 |
IFB1/2022/19
(IFB24) |
Jan-41 |
13.05 |
12.975 |
0.00
|
|
|
| Key Interest Rates |
|
Mov (bps) |
| O/N Interbank |
4.7888% |
-2.60 |
| 91 Day T-bill |
7.302% |
1.90 |
| 182 Day T-bill |
8.164% |
3.00 |
| 364 Day T-bill |
9.752% |
-1.50 |
| Inflation |
5.56% |
48.00 |
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