Thoughts for Thursday
The incoming Infrastructure Bond has taken a bit of the shine away from the secondary space as it captures market’s attention. As the deadline day for submitting your bids approaches, below are my expectations of how I think it will go:
- Average of bids: 12.85% - 12.95%
- Subscription: KES 75Bn - KES 85Bn
- The feeling is that the market will go into this auction with the aim of testing CBK’s resolve in regards to how far they are willing to go to lock in new funding.
Away from this, the secondary space has been sluggish for better parts of this week. There are always opportunities available and below is a snapshot of what is at play for your consideration. Happy hunting!
|
|
| Indicative Two-Way Quotes - Benchmark Tenors |
| Benchmark Tenor |
Bid (%) |
Offer (%) |
Mov (t-t0)% |
| 1Yr |
9.90 |
9.70 |
0.00 |
| 2Yr |
10.30 |
10.10 |
0.00 |
| 5yr |
11.45 |
11.35 |
0.00 |
| 10yr |
12.90 |
12.60 |
0.00 |
| 15yr |
13.00 |
12.80 |
0.00 |
| 20yr |
13.85 |
13.80 |
0.00 |
| 25yr |
13.90 |
13.70 |
0.00 |
|
|
| Indicative Two-Way Quotes - IFB Series |
| IFB series |
Maturity |
Bid (%) |
Offer (%) |
Mov (t-t0)% |
| IFB1/2017/7
(IFB13)
|
Nov-24 |
10.00 |
9.50 |
0.00 |
IFB1/2016/9
(IFB10) |
May-25 |
10.00 |
9.60 |
0.00 |
IFB1/2015/12
(IFB8) |
Mar-27 |
10.00 |
9.60 |
0.00 |
IFB1/2017/12
(IFB12) |
Feb-29 |
10.80 |
10.60 |
0.00 |
IFB1/2016/15
(IFB11) |
Oct-31 |
11.40 |
11.20 |
0.00 |
IFB1/2018/15
(IFB14) |
Jan-33 |
12.25 |
11.90 |
0.00 |
XIFB1/2018/20
(IFB15) |
Oct-38 |
12.00 |
11.80 |
0.00 |
IFB1/2019/25
(IFB16) |
Feb-44 |
12.50 |
12.20 |
0.00 |
IFB1/2019/16
(IFB17) |
Oct-35 |
12.35 |
12.15 |
0.00 |
IFB1/2020/9
(IFB18) |
Apr-29 |
11.10 |
11.00 |
0.00 |
IFB1/2020/6
(IFB19) |
May-26 |
10.10 |
9.70 |
0.00 |
IFB1/2020/11
(IFB20) |
Aug-31 |
12.10 |
11.80 |
0.00 |
IFB1/2021/16
(IFB21) |
Jan-37 |
12.45 |
12.30 |
0.00 |
IFB1/2021/18
(IFB22) |
Mar-39 |
12.45 |
12.20 |
0.00 |
IFB1/2021/21
(IFB23) |
Aug-42 |
12.65 |
12.60 |
0.03 |
|
|
| Key Interest Rates |
|
Mov (bps) |
| O/N Interbank |
N/A |
N/A |
| 91 Day T-bill |
7.317% |
-2.60 |
| 182 Day T-bill |
8.095% |
-1.70 |
| 364 Day T-bill |
9.594% |
5.00 |
| Inflation |
5.39% |
-34.00 |
|
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