Valentine’s Day
As you spread the bids, today is a big reminder to spread the love too. Gentlemen open up those wallets, and ladies buy those socks again.
Below are my updated expectations of how the IFB1/2022/18Yr auction will play out:
- Average of bids: 12.80% - 12.90%
- Subscription: KES 85Bn - KES 100Bn
- The feeling remains 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.
Attached is the CBK weekly report to assist in your reading of the market and updated benchmark Yield Curve levels are to be found on the attached pricelist. I have also attached the NSE Implied Yields for the NSE’s valuations of all the bonds. Below is a snapshot of what is at p\lay within the secondary market 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 |
11.30 |
11.00 |
0.00 |
IFB1/2020/6
(IFB19) |
May-26 |
10.10 |
9.70 |
0.00 |
IFB1/2020/11
(IFB20) |
Aug-31 |
12.30 |
12.00 |
0.00 |
IFB1/2021/16
(IFB21) |
Jan-37 |
12.45 |
12.30 |
0.00 |
IFB1/2021/18
(IFB22) |
Mar-39 |
12.55 |
12.30 |
0.00 |
IFB1/2021/21
(IFB23) |
Aug-42 |
12.80 |
12.60 |
0.07 |
|
|
| Key Interest Rates |
|
Mov (bps) |
| O/N Interbank |
4.3613% |
-49.06 |
| 91 Day T-bill |
7.258% |
-5.90 |
| 182 Day T-bill |
8.108% |
1.30 |
| 364 Day T-bill |
9.668% |
7.40 |
| Inflation |
5.39% |
-34.00 |
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