Nov Issues Confirmed
The CBK has confirmed details of next month’s bond auction. Two bonds will be on offer; a new 5Yr Bond, FXD1/2021/5Yr, and the re-opening of the FXD1/2019/20Yr (17.5 years left to maturity) in a bid to lock in KES 50Bn. For all details pertaining to this auction, the prospectus is attached.
In the Business Daily today, there is an article discussing the issuance of a KES 150Bn infrastructure bond.
A few queries have been raised as to the viability of the details contained in this article. In my view there are some inaccuracies, most glaring of all is the fact that the CBK has already published the bond auction prospectus for November 2021 as detailed above. It would also be highly unlikely for the CBK to issue a KES 150Bn infrastructure bond as this would double their largest advertised target of KES 75Bn seen in the recently issued IFB1/2021/21Yr. Let me know what you think of this article or my interpretation of the same. Be kind if you disagree with me though.
For your plays today, below is a snapshot of what is within the secondary market. Happy hunting!
|
|
| Indicative Two-Way Quotes - Benchmark Tenors |
| Benchmark Tenor |
Bid (%) |
Offer (%) |
Mov (t-t0)% |
| 1Yr |
8.80 |
8.50 |
0.00 |
| 2Yr |
9.60 |
9.20 |
0.00 |
| 5yr |
11.20 |
11.00 |
0.00 |
| 10yr |
12.20 |
12.10 |
0.00 |
| 15yr |
12.90 |
12.65 |
0.00 |
| 20yr |
13.45 |
13.35 |
0.00 |
| 25yr |
13.85 |
13.75 |
0.00 |
|
|
| Indicative Two-Way Quotes - IFB Series |
| IFB series |
Maturity |
Bid (%) |
Offer (%) |
Mov (t-t0)% |
| IFB1/2017/7
(IFB13)
|
Nov-24 |
9.50 |
9.00 |
0.05 |
IFB1/2016/9
(IFB10) |
May-25 |
9.50 |
9.00 |
0.05 |
IFB1/2015/12
(IFB8) |
Mar-27 |
9.60 |
9.00 |
0.05 |
IFB1/2017/12
(IFB12) |
Feb-29 |
10.80 |
10.60 |
0.00 |
IFB1/2016/15
(IFB11) |
Oct-31 |
11.20 |
11.10 |
0.00 |
IFB1/2018/15
(IFB14) |
Jan-33 |
11.45 |
11.25 |
0.00 |
IFB1/2018/20
(IFB15) |
Oct-38 |
12.00 |
11.75 |
0.00 |
IFB1/2019/25
(IFB16) |
Feb-44 |
12.50 |
12.10 |
0.00 |
IFB1/2019/16
(IFB17) |
Oct-35 |
12.00 |
11.90 |
0.00 |
IFB1/2020/9
(IFB18) |
Apr-29 |
10.95 |
10.70 |
0.00 |
IFB1/2020/6
(IFB19) |
May-26 |
9.30 |
9.00 |
0.00 |
IFB1/2020/11
(IFB20) |
Aug-31 |
11.10 |
10.90 |
0.00 |
IFB1/2021/16
(IFB21) |
Jan-37 |
12.20 |
12.00 |
0.00 |
IFB1/2021/18
(IFB22) |
Mar-39 |
12.30 |
12.05 |
0.00 |
IFB1/2021/21
(IFB23) |
Aug-42 |
12.70 |
12.65 |
0.05 |
|
|
| Key Interest Rates |
|
Mov (bps) |
| O/N Interbank |
4.9800% |
-4.44 |
| 91 Day T-bill |
7.020% |
6.80 |
| 182 Day T-bill |
7.417% |
-1.10 |
| 364 Day T-bill |
8.355% |
13.00 |
| Inflation |
6.91% |
34.00 |
|
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