More re-opened goodies from the CBK will be auctioned this week. The FXD1/2023/2Yr and FXD1/2016/10Yr are on offer and below are my expectations of how these papers will perform:
FXD1/2023/2Yr (1.9 years left): average within the 16.85% - 16.95% range. Cut-off to come in at 17.00%
FXD1/2016/10Yr (2.9 years left): average within the 17.40% - 17.50% range. Cut-off to come in at 17.50%
Subscription: Oversubscription
Sale period ends on Wednesday (13-Sep-2023), at 10.00 A.M EAT
For your trading activities for the day and 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
15.00
14.50
0.00
2Yr
16.80
16.50
0.00
5yr
17.80
17.50
0.00
10yr
17.00
16.50
0.00
15yr
17.00
16.00
0.00
20yr
17.00
16.00
0.00
25yr
17.00
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
13.50
12.75
0.00
IFB1/2016/9 (IFB10)
May-25
13.50
13.00
0.00
IFB1/2015/12 (IFB8)
Mar-27
14.00
13.00
0.00
IFB1/2017/12 (IFB12)
Feb-29
15.00
14.00
0.00
IFB1/2016/15 (IFB11)
Oct-31
15.00
14.00
0.00
IFB1/2018/15 (IFB14)
Jan-33
15.00
14.50
0.00
IFB1/2018/20 (IFB15)
Oct-38
16.00
15.00
0.00
IFB1/2019/25 (IFB16)
Feb-44
16.50
15.00
0.00
IFB1/2019/16 (IFB17)
Oct-35
16.00
15.00
0.00
IFB1/2020/9 (IFB18)
Apr-29
14.50
14.00
0.00
IFB1/2020/6 (IFB19)
May-26
13.00
12.00
0.00
IFB1/2020/11 (IFB20)
Aug-31
15.75
15.00
0.00
IFB1/2021/16 (IFB21)
Jan-37
15.75
15.00
0.00
IFB1/2021/18 (IFB22)
Mar-39
15.70
15.00
0.00
IFB1/2021/21 (IFB23)
Aug-42
16.50
15.30
0.00
IFB1/2022/19 (IFB24)
Jan-41
15.50
15.00
0.00
IFB1/2022/18 (IFB25)
May-40
15.70
15.50
0.00
IFB1/2022/14 (IFB26)
Oct-36
16.00
15.50
0.00
IFB1/2022/6 (IFB27)
Nov-28
13.30
13.20
0.00
IFB1/2023/17 (IFB28)
Feb-40
16.00
15.00
0.00
IFB1/2023/7 (IFB29)
Jun-30
15.90
15.65
0.00
Key Interest Rates
Mov (bps)
O/N Interbank
12.3900%
1.47
91 Day T-bill
14.2337%
24.86
182 Day T-bill
14.3686%
42.98
364 Day T-bill
14.8603%
109.53
Central Bank Rate (CBR)
10.50%
0.00
Inflation
6.70%
-60.00
Attached are the bond positions available today, the NSE Implied Yields, the CBK Weekly Report and the Bond Auction Prospectus for September 2023.
