Kenya Bond Market Update: 1 December 2022

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December 1, 2022

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Hello December!

December is with us! Emails may go unanswered and phone calls may be ignored as the holiday season begins its annual take over. Work must still continue and for your day ahead, here are some updates available in today’s note:

Attached you will find the bond’s pricelist with updated end-month NSE valuations.
The end-month NSE Implied Yields with all the listed bonds and their corresponding implied yields is also attached for your perusal.
Attached is the inflation data for November 2022, where the year-on-year inflation rate came in at 9.5%.
Finally, with the switch bond out of the way, we have the December auction to look forward to and attached is the prospectus to help you prepare to submit your bids.

For your trading activities ahead, below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting and best wishes for the holiday season!

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

Indicative Two-Way Quotes - Benchmark Tenors
Benchmark Tenor	Bid (%)	Offer (%)	Mov (t-t0)%
1Yr	10.30	9.90	0.00
2Yr	11.75	11.00	0.00
5yr	13.40	13.20	0.00
10yr	13.95	13.80	0.00
15yr	14.00	13.80	0.00
20yr	14.10	13.90	0.00
25yr	14.30	14.05	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	12.50	11.45	0.00
IFB1/2016/9 (IFB10)	May-25	12.50	11.45	0.00
IFB1/2015/12 (IFB8)	Mar-27	12.80	12.00	0.00
IFB1/2017/12 (IFB12)	Feb-29	12.80	11.50	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	13.20	12.80	0.00
IFB1/2021/16 (IFB21)	Jan-37	13.75	13.50	0.00
IFB1/2021/18 (IFB22)	Mar-39	13.85	13.20	0.00
IFB1/2021/21 (IFB23)	Aug-42	14.00	13.30	0.00
IFB1/2022/19 (IFB24)	Jan-41	13.90	13.30	0.00
IFB1/2022/18 (IFB25)	May-40	13.75	13.50	0.00
IFB1/2022/14 (IFB26)	Oct-36	13.95	13.85	0.00

Key Interest Rates		Mov (bps)
O/N Interbank	5.1356%	2.59
91 Day T-bill	9.237%	4.60
182 Day T-bill	9.733%	1.20
364 Day T-bill	10.219%	3.80
Inflation	9.50%	-9.00

Attached are the bond positions available today, the end-month NSE Implied Yields, the inflation data for November 2022 and the December bond auction prospectus.

Bond Positions Available Today

NSE Implied Yields

Inflation Data for November 2022

December Bond Auction

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Kenya Bond Market Update: 1 December 2022

Hello December!

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