The CBK has on offer the IFB1/2023/7Yr as they seek KES 60bn from its sale. Below are my updated expectations for how the auction will play out:
Bids: Bidding range of 14.90% - 15.30%
Average: 14.95% – 15.10%
Subscription: Oversubscription as a result of improved levels of liquidity in the market
The prospectus for this auction is attached with all the required information to facilitate your bidding process.
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. The CBK FX reserves are now at USD 7.532Bn or 4.15 months of import cover. This brings the levels above the 4 month import cover level that the CBK is mandated to maintain.
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!
Below are the two-way quotes for the benchmark tenors:
Indicative Two-Way Quotes - Benchmark Tenors
Benchmark Tenor
Bid (%)
Offer (%)
Mov (t-t0)%
1Yr
11.75
11.25
0.00
2Yr
13.75
13.20
0.00
5yr
14.50
14.20
0.00
10yr
14.50
14.30
0.00
15yr
14.60
14.30
0.00
20yr
14.75
14.40
0.00
25yr
14.75
14.40
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
13.20
12.70
0.00
IFB1/2016/9 (IFB10)
May-25
13.20
12.60
0.00
IFB1/2015/12 (IFB8)
Mar-27
13.30
13.00
0.00
IFB1/2017/12 (IFB12)
Feb-29
13.80
13.00
0.00
IFB1/2016/15 (IFB11)
Oct-31
14.00
13.00
0.00
IFB1/2018/15 (IFB14)
Jan-33
14.50
14.10
0.00
IFB1/2018/20 (IFB15)
Oct-38
14.75
14.00
0.00
IFB1/2019/25 (IFB16)
Feb-44
15.00
14.00
0.00
IFB1/2019/16 (IFB17)
Oct-35
14.50
13.80
0.00
IFB1/2020/9 (IFB18)
Apr-29
13.75
13.50
0.00
IFB1/2020/6 (IFB19)
May-26
13.00
12.00
0.00
IFB1/2020/11 (IFB20)
Aug-31
14.50
14.10
0.00
IFB1/2021/16 (IFB21)
Jan-37
15.00
14.20
0.00
IFB1/2021/18 (IFB22)
Mar-39
15.00
14.20
0.00
IFB1/2021/21 (IFB23)
Aug-42
15.00
14.50
0.00
IFB1/2022/19 (IFB24)
Jan-41
15.00
14.00
0.00
IFB1/2022/18 (IFB25)
May-40
15.00
14.00
0.00
IFB1/2022/14 (IFB26)
Oct-36
14.80
14.50
0.00
IFB1/2022/6 (IFB27)
Nov-28
13.30
13.20
0.00
IFB1/2023/17 (IFB28)
Feb-40
15.00
14.50
0.00
Key Interest Rates
Mov (bps)
O/N Interbank
9.2019%
6.00
91 Day T-bill
11.414%
31.10
182 Day T-bill
11.548%
43.60
364 Day T-bill
11.608%
11.10
Central Bank Rate (CBR)
9.50%
0.00
Inflation
8.00%
10.00
Attached are the bond positions available today, the NSE Implied Yields from last week, the CBK Weekly Report and the IFB1/2023/7Yr bond prospectus.
