Kenya Bond Market Update: 05 November 2021

Published on
November 5, 2021
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Friday Predictions 


The bond auction for this month closes on Tuesday (09-Nov-2021) and below are my expectations for the two papers on offer:
  • FXD1/2021/5Yr (5 years): average between 11.10% - 11.20%. 
  • FXD1/2019/20Yr (17.5 years): average between 13.35% - 13.45%.
  • The auction to be oversubscribed with interest skewed towards the shorter 5Yr bond.
The T-bill auction was oversubscribed, further highlighting the increased levels of liquidity in the local space. The results are attached for your perusal. Below is a snapshot of what is at play within the secondary market. Happy hunting and a lovely weekend ahead! 
 
 
Indicative Two-Way Quotes - Benchmark Tenors
Benchmark Tenor Bid (%) Offer (%) Mov (t-t0)%
1Yr 8.80 8.50 0.00
2Yr 9.60 9.20 0.00
5yr 11.20 11.00 0.00
10yr 12.20 12.10 0.00
15yr 13.00 12.80 0.00
20yr 13.45 13.35 0.00
25yr 13.80 13.70 0.00
 
Indicative Two-Way Quotes - IFB Series
IFB series Maturity Bid (%) Offer (%) Mov (t-t0)%
IFB1/2017/7
(IFB13)
Nov-24 9.50 9.00 0.00
IFB1/2016/9
(IFB10)
May-25 9.50 9.00 0.00
IFB1/2015/12
(IFB8)
Mar-27 9.60 9.00 0.00
IFB1/2017/12
(IFB12)
Feb-29 10.80 10.60 0.00
IFB1/2016/15
(IFB11)
Oct-31 11.40 11.20 0.15
IFB1/2018/15
(IFB14)
Jan-33 11.45 11.35 0.02
IFB1/2018/20
(IFB15)
Oct-38 12.00 11.80 0.00
IFB1/2019/25
(IFB16)
Feb-44 12.50 12.15 0.00
IFB1/2019/16
(IFB17)
Oct-35 12.20 12.10 0.13
IFB1/2020/9
(IFB18)
Apr-29 10.90 10.80 0.15
IFB1/2020/6
(IFB19)
May-26 9.75 9.25 0.13
IFB1/2020/11
(IFB20)
Aug-31 11.50 11.20 0.13
IFB1/2021/16
(IFB21)
Jan-37 12.30 12.10 0.13
IFB1/2021/18
(IFB22)
Mar-39 12.30 12.10 0.00
IFB1/2021/21
(IFB23)
Aug-42 12.60 12.55 0.00
 
Key  Interest Rates   Mov (bps)
O/N Interbank 4.7357% 24.50
91 Day T-bill 7.097% 5.70
182 Day T-bill 7.554% 6.80
364 Day T-bill 8.624% 13.50
Inflation 6.45% -46.00

 
Bond Positions Available Today
Results of T-Bill Auction
Bond Auction Prospectus for November 2021
Trade Now

MATHANGANI KARIUKI


Director | Bespoke Securities

Director, Interest Rates | AKN Investments


+254 (0) 732472655

Eikon Messenger: 
mathanganik@bespokesecurities.co.ke
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