IFB Week
A day to go before the sale period of the incoming IFB1/2022/18Yr comes to an end. Below are my updated expectations:
- Average: 13.50% - 13.60% range
- Cut-off: approximately 20bps away from the average
- Subscription: The bids should meet the KES 75Bn target
- Does the above tally with your expectations? Please do tell.
Attached is the CBK weekly report to assist in your reading of the market while updated benchmark Yield Curve levels are to be found on the attached pricelist. I have also attached the NSE Implied Yields for the NSE’s valuations of all the treasuries.
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 |
10.20 |
9.90 |
0.00 |
| 2Yr |
11.00 |
10.55 |
0.00 |
| 5Yr |
12.30 |
12.25 |
0.00 |
| 10Yr |
13.55 |
13.50 |
0.00 |
| 15Yr |
13.90 |
13.85 |
0.00 |
| 20Yr |
14.00 |
13.80 |
0.00 |
| 25Yr |
14.00 |
13.90 |
0.00 |
|
|
| Indicative Two-Way Quotes - IFB Series |
| IFB series |
Maturity |
Bid (%) |
Offer (%) |
Mov (t-t0)% |
IFB1/2017/7
(IFB13) |
Nov-24 |
11.50 |
10.50 |
0.00 |
IFB1/2016/9
(IFB10) |
May-25 |
11.50 |
10.50 |
0.00 |
IFB1/2015/12
(IFB8) |
Mar-27 |
11.50 |
10.50 |
0.00 |
IFB1/2017/12
(IFB12) |
Feb-29 |
11.50 |
10.60 |
0.00 |
IFB1/2016/15
(IFB11) |
Oct-31 |
12.60 |
12.50 |
0.00 |
IFB1/2018/15
(IFB14) |
Jan-33 |
13.10 |
12.80 |
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 |
11.40 |
11.25 |
0.00 |
IFB1/2020/6
(IFB19) |
May-26 |
11.30 |
10.75 |
0.00 |
IFB1/2020/11
(IFB20) |
Aug-31 |
13.00 |
12.50 |
0.00 |
IFB1/2021/16
(IFB21) |
Jan-37 |
13.15 |
12.90 |
0.00 |
IFB1/2021/18
(IFB22) |
Mar-39 |
13.20 |
12.95 |
0.00 |
IFB1/2021/21
(IFB23) |
Aug-42 |
13.20 |
13.10 |
0.00 |
IFB1/2022/19
(IFB24) |
Jan-41 |
13.20 |
13.05 |
0.00
|
|
|
| Key Interest Rates |
|
Mov (bps) |
| O/N Interbank |
4.6749% |
-6.26 |
| 91 Day T-bill |
7.811% |
6.70 |
| 182 Day T-bill |
8.974% |
7.30 |
| 364 Day T-bill |
9.935% |
5.40 |
| Inflation |
7.10% |
63.00 |
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