The sale-period of this year’s first auction closes on Wednesday, 10-Jan-2024. The CBK has on offer a new 3Yr Bond, FXD1/2024/3Yr and has re-opened the FXD1/2023/5Yr as they seek to secure KES 35Bn. My expectations for the two papers are as follows:
FXD1/2024/3Yr (3 years): average between 18.60% - 18.70%
FXD1/2023/5Yr (4.7 years): average between 18.90% - 19.00%
To get things going for the 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.
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
16.50
16.20
0.00
2Yr
18.00
17.80
0.00
5yr
18.50
18.00
0.00
10yr
17.00
16.50
0.00
15yr
16.50
16.00
0.00
20yr
16.50
16.00
0.00
25yr
16.50
16.00
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
16.00
15.50
0.00
IFB1/2016/9 (IFB10)
May-25
16.00
15.75
0.00
IFB1/2015/12 (IFB8)
Mar-27
15.50
15.00
0.00
IFB1/2017/12 (IFB12)
Feb-29
16.00
15.00
0.00
IFB1/2016/15 (IFB11)
Oct-31
16.00
15.50
0.00
IFB1/2018/15 (IFB14)
Jan-33
15.50
15.00
0.00
IFB1/2018/20 (IFB15)
Oct-38
16.50
16.00
0.00
IFB1/2019/25 (IFB16)
Feb-44
16.50
16.00
0.00
IFB1/2019/16 (IFB17)
Oct-35
15.50
15.20
0.00
IFB1/2020/9 (IFB18)
Apr-29
15.00
14.50
0.00
IFB1/2020/6 (IFB19)
May-26
14.50
13.75
0.00
IFB1/2020/11 (IFB20)
Aug-31
15.50
15.00
0.00
IFB1/2021/16 (IFB21)
Jan-37
17.00
16.00
0.00
IFB1/2021/18 (IFB22)
Mar-39
17.00
16.00
0.00
IFB1/2021/21 (IFB23)
Aug-42
17.00
16.00
0.00
IFB1/2022/19 (IFB24)
Jan-41
17.00
16.50
0.00
IFB1/2022/18 (IFB25)
May-40
17.00
16.50
0.00
IFB1/2022/14 (IFB26)
Oct-36
17.00
16.50
0.00
IFB1/2022/6 (IFB27)
Nov-28
17.00
16.00
0.00
IFB1/2023/17 (IFB28)
Feb-40
16.30
16.00
0.00
IFB1/2023/7 (IFB29)
Jun-30
16.50
16.00
0.00
IFB1/2023/6.5 (IFB30)
May-30
17.60
17.50
-0.05
Key Interest Rates
Mov (bps)
O/N Interbank
14.4242%
35.24
91 Day T-bill
16.0589%
7.60
182 Day T-bill
16.0915%
12.48
364 Day T-bill
16.2786%
17.86
Central Bank Rate (CBR)
12.50%
200.00
Inflation
6.60%
-20.00
Attached are the bond positions available today, the NSE Implied Yields, the CBK Weekly Report and the January 2024 Bond Prospectus.
