Kenya Bond Market Update: 20 April 2023

Published on
April 20, 2023
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Results & Rejections

 
An interesting primary auction as the FXD1/2022/3Yr results were released while the CBK announced that the FXD1/2019/15Yr auction was canceled. The FXD1/2022/3Yr results are summarized below:
  • FXD1/2022/3Yr Average: 13.471%
  • Subscription: KES 1.757Bn in bids accepted from a total of KES 7.328Bn received.
  • Comment: Massive rejections as the CBK looked to signal to the market that exorbitant interest rates will not be accepted. The average of all bids received was 13.839%, which was significantly than the accepted average. This is probably the reason behind the FXD1/2019/15Yr auction cancellation.
  • Attached are the results in full for your perusal.
For your trading activity ahead, below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting!
NB: Tomorrow is a public holiday in Kenya to mark Idd-ul-Fitr

 
Below are the two-way quotes for the benchmark tenors:
 
Indicative Two-Way Quotes - Benchmark Tenors
Benchmark Tenor Bid (%) Offer (%) Mov (t-t0)%
1Yr 11.00 10.50 0.00
2Yr 13.50 13.00 0.00
5yr 14.00 13.65 0.00
10yr 14.30 14.10 0.00
15yr 14.30 14.00 0.00
20yr 14.50 14.00 0.00
25yr 14.50 14.20 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 13.00 0.00
IFB1/2015/12 (IFB8) Mar-27 13.30 13.00 0.00
IFB1/2017/12 (IFB12) Feb-29 13.50 13.00 0.00
IFB1/2016/15 (IFB11) Oct-31 13.50 13.00 0.00
IFB1/2018/15 (IFB14) Jan-33 14.00 13.70 0.00
IFB1/2018/20 (IFB15) Oct-38 14.20 13.80 0.00
IFB1/2019/25 (IFB16) Feb-44 14.20 13.80 0.00
IFB1/2019/16 (IFB17) Oct-35 14.00 13.70 0.00
IFB1/2020/9 (IFB18) Apr-29 13.20 12.70 0.00
IFB1/2020/6 (IFB19) May-26 12.70 12.00 0.00
IFB1/2020/11 (IFB20) Aug-31 14.00 13.70 0.00
IFB1/2021/16 (IFB21) Jan-37 14.00 13.60 0.00
IFB1/2021/18 (IFB22) Mar-39 14.00 13.60 0.00
IFB1/2021/21 (IFB23) Aug-42 14.20 13.80 0.00
IFB1/2022/19 (IFB24) Jan-41 14.00 13.50 0.00
IFB1/2022/18 (IFB25) May-40 14.00 13.70 0.00
IFB1/2022/14 (IFB26) Oct-36 13.80 13.70 0.00
IFB1/2022/6 (IFB27) Nov-28 13.30 13.20 0.00
IFB1/2023/17 (IFB28) Feb-40 14.40 14.30 -0.03
 
 
Key  Interest Rates   Mov (bps)
O/N Interbank 8.7304% 5.89
91 Day T-bill 10.072% 6.80
182 Day T-bill 10.428% 6.00
364 Day T-bill 10.932% 7.50
Central Bank Rate (CBR) 9.50% 75.00
Inflation 9.19% -4.00
 
Attached are the bond positions available today and the FXD1/2022/3Yr bond auction results.
 
Bond Positions
FXD1/2022/3Yr
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