The results of the FXD1/2023/2Yr, and the re-opened 5Yr, FXD1/2023/5Yr have been attached and below is a quick summary of how things played out:
FXD1/2023/2Yr: average of 16.9723% on the back of KES 11.659Bn in accepted bids from a total of KES 38.301Bn in bids submitted
FXD1/2023/5Yr (re-opened): average of 17.9538% on the back of KES 7.456Bn in accepted bids from a total of KES 14.704Bn in bids submitted
Subscription: Auction was oversubscribed as the CBK received KES 53.006Bn in bids. The CBK however only accepted KES 19.115Bn
The CBK has rejected a significant portion of the bids received in a bid to curtail the push for higher rates by the market. This is in line with the messaging from the Monetary Policy Committee (MPC) of the CBK that signaled that the CBK will be looking to reduce the interest rates in the bond space.
For the day’s trading activities, 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
16.50
1.25
5yr
18.00
17.50
0.70
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
16.00
15.00
0.20
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
15.90
15.50
-0.10
Key Interest Rates
Mov (bps)
O/N Interbank
10.2052%
109.75
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 and the FXD1/2023/2Yr & FXD1/2023/5Yr bond auction results.
