The sale-period of the new 2Yr, FXD1/2023/2Yr, and the re-opened 5Yr, FXD1/2023/5Yr, closes on Wednesday (16-Aug-2023). The CBK is seeking to secure KES 40bn from this auction. With the introduction of CBK’s new system, the CBK DhowCSD, the sale-period of bond auctions will end on the same day as the auction. My expectations for this auction are as follows:
FXD1/2023/2Yr: average between 17.25% – 17.35%
FXD1/2023/5Yr (4.9 years left): average between 17.85% - 17.95%
The bond prospectus is attached with all details required to submit your bids
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
13.75
13.25
0.00
2Yr
17.00
16.00
0.35
5yr
17.20
16.90
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
15.00
14.75
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
15.50
15.00
0.00
IFB1/2022/6 (IFB27)
Nov-28
13.30
13.20
0.00
IFB1/2023/17 (IFB28)
Feb-40
15.70
15.00
0.00
IFB1/2023/7 (IFB29)
Jun-30
16.00
15.60
0.00
Key Interest Rates
Mov (bps)
O/N Interbank
9.0536%
25.41
91 Day T-bill
13.1104%
42.49
182 Day T-bill
13.4381%
88.02
364 Day T-bill
13.3402%
23.30
Central Bank Rate (CBR)
10.50%
0.00
Inflation
7.30%
-70.00
Attached are the bond positions available today, the NSE Implied Yields for last week, the CBK Weekly Report and the bond auction prospectus for August 2023.
