Kenya Bond Market Update: 3 April 2023

Published on
April 3, 2023
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Happy New Month


It’s an auction week and we have the FXD2/2018/10Yr (5.8 years) in play. The sale period for this bond closes tomorrow and my expectations for this bond remain as below:
  • Average: 14.05% - 14.15%
  • Subscription: An under-subscription is expected
  • Attached is the bond prospectus for all the information required
For your activity away from the primary, 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 and inflation data for March 2023.
To bring it all together, below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting and best wishes for the month ahead!
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 12.80 12.50 0.00
5yr 13.75 13.70 0.00
10yr 14.20 14.10 0.00
15yr 14.20 14.00 0.00
20yr 14.10 13.90 0.00
25yr 14.35 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 0.20
IFB1/2016/9 (IFB10) May-25 13.20 13.00 0.35
IFB1/2015/12 (IFB8) Mar-27 13.30 13.00 0.40
IFB1/2017/12 (IFB12) Feb-29 13.50 13.00 0.45
IFB1/2016/15 (IFB11) Oct-31 13.50 13.00 0.00
IFB1/2018/15 (IFB14) Jan-33 14.00 13.50 0.00
IFB1/2018/20 (IFB15) Oct-38 13.80 13.50 0.00
IFB1/2019/25 (IFB16) Feb-44 14.00 12.90 0.00
IFB1/2019/16 (IFB17) Oct-35 13.70 13.50 0.00
IFB1/2020/9 (IFB18) Apr-29 13.20 12.70 0.00
IFB1/2020/6 (IFB19) May-26 12.30 12.00 0.00
IFB1/2020/11 (IFB20) Aug-31 13.70 13.50 0.00
IFB1/2021/16 (IFB21) Jan-37 13.75 13.60 0.00
IFB1/2021/18 (IFB22) Mar-39 13.85 13.60 0.00
IFB1/2021/21 (IFB23) Aug-42 14.20 13.80 0.00
IFB1/2022/19 (IFB24) Jan-41 13.90 13.50 0.00
IFB1/2022/18 (IFB25) May-40 13.80 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 14.325 -0.01
 
Key  Interest Rates   Mov (bps)
O/N Interbank 7.8612% 17.33
91 Day T-bill 9.907% 7.80
182 Day T-bill 10.399% 5.50
364 Day T-bill 10.800% 1.30
Central Bank Rate (CBR) 9.50% 75.00
Inflation 9.20% 25.00
 
Attached are the bond positions available today, the NSE Implied Yields, the CBK Weekly Report, the inflation data for February 2023 and the April 2023 Bond Auction prospectus.
 
Bond Positions
NSE Implied Yields
CBK Weekly Report
Inflation Data for February 2023
April 2023 Bond Auction
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