Kenya Bond Market Update: 06 March 2023

Published on

March 6, 2023

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Yucky Seven

Tough weekend for Manchester United and Mercedes F1 fans out there, and if you are a fan of both like me, stay strong!
The new infrastructure bond, IFB1/2023/17Yr, will be auctioned this week. My expectations for how it will perform are below:

Average: 14.20% – 14.30% range, with the cut-off to come in 10 – 15bps away from the average
Subscription: Oversubscription, as it is expected the KES 50Bn target set will be met

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.
To bring it all together, below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting and bidding this week!

Below are the two-way quotes for the benchmark tenors:

Indicative Two-Way Quotes - Benchmark Tenors
Benchmark Tenor	Bid (%)	Offer (%)	Mov (t-t0)%
1Yr	11.00	10.50	0.00
2Yr	12.80	12.50	0.00
5yr	13.80	13.75	0.00
10yr	14.20	14.10	0.00
15yr	14.20	14.00	0.00
20yr	14.10	13.90	0.00
25yr	14.35	14.20	0.00
akn.co.ke

Indicative Two-Way Quotes - IFB Series
IFB series	Maturity	Bid (%)	Offer (%)	Mov (t-t0)%
IFB1/2017/7 (IFB13)	Nov-24	12.50	12.00	0.00
IFB1/2016/9 (IFB10)	May-25	12.50	12.00	0.00
IFB1/2015/12 (IFB8)	Mar-27	12.50	12.00	0.00
IFB1/2017/12 (IFB12)	Feb-29	12.80	12.00	0.00
IFB1/2016/15 (IFB11)	Oct-31	13.20	12.70	0.00
IFB1/2018/15 (IFB14)	Jan-33	13.60	13.20	0.00
IFB1/2018/20 (IFB15)	Oct-38	13.80	13.50	0.00
IFB1/2019/25 (IFB16)	Feb-44	14.00	12.90	0.00
IFB1/2019/16 (IFB17)	Oct-35	13.70	13.50	0.00
IFB1/2020/9 (IFB18)	Apr-29	13.20	12.70	0.00
IFB1/2020/6 (IFB19)	May-26	12.30	12.00	0.00
IFB1/2020/11 (IFB20)	Aug-31	13.50	13.00	0.00
IFB1/2021/16 (IFB21)	Jan-37	13.95	13.70	0.00
IFB1/2021/18 (IFB22)	Mar-39	13.85	13.60	0.00
IFB1/2021/21 (IFB23)	Aug-42	14.10	13.80	0.00
IFB1/2022/19 (IFB24)	Jan-41	13.90	13.50	0.00
IFB1/2022/18 (IFB25)	May-40	13.80	13.70	0.00
IFB1/2022/14 (IFB26)	Oct-36	13.80	13.70	0.00
IFB1/2022/6 (IFB27)	Nov-28	13.25	13.175	0.00
akn.co.ke

Key Interest Rates		Mov (bps)
O/N Interbank	6.8766%	12.15
91 Day T-bill	9.698%	4.30
182 Day T-bill	10.165%	4.80
364 Day T-bill	10.690%	1.40
Inflation	9.20%	22.00
akn.co.ke

Attached are the bond positions available today, the NSE Implied Yields, the CBK Weekly Report and the IFB1/2023/17Yr Bond Prospectus.

Bond Positions Available Today

NSE Implied Yields

CBK Weekly Report

IFB1/2023/17Yr

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Kenya Bond Market Update: 06 March 2023

Yucky Seven

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