New Year’s Eve
Next time we interact, we will be in a new year. The past two years have been tough as we faced a collective challenge through the pandemic, which unfortunately continues to affect us all. With that in mind, I wish you and yours good health in the new year. Take care of both your body and mind and all else will take care of itself.
The CBK is getting started with 2022 pretty quickly. The first of the two auctions in January will be held next week, as the sale period of the FXD1/2020/5Yr (3.4 years) closes on Tuesday, 4th January 2022. My expectations for this paper are as follows:
- FXD1/2020/5Yr (3.4 years): average of 11.05% - 11.15%, with the cut-off to come in 15 - 20bps away from the average.
My expectations are based on the current tightness in the market that may have a negative effect the volumes that will go in for the auction. A final prediction will be given next week once we get the new year started and a proper feel of the market will be possible. The prospectus is attached for any additional information required.
For your final plays of the year, below is a snapshot of the secondary space. Happy hunting and a happy new year to you and yours. See you on the flip side!
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|
| Indicative Two-Way Quotes - Benchmark Tenors |
| Benchmark Tenor |
Bid (%) |
Offer (%) |
Mov (t-t0)% |
| 1Yr |
9.20 |
8.80 |
0.00 |
| 2Yr |
10.30 |
10.00 |
0.00 |
| 5yr |
11.40 |
11.325 |
0.00 |
| 10yr |
12.70 |
12.55 |
0.00 |
| 15yr |
13.00 |
12.80 |
0.00 |
| 20yr |
13.50 |
13.30 |
0.00 |
| 25yr |
13.70 |
13.60 |
0.00 |
|
|
| Indicative Two-Way Quotes - IFB Series |
| IFB series |
Maturity |
Bid (%) |
Offer (%) |
Mov (t-t0)% |
| IFB1/2017/7
(IFB13)
|
Nov-24 |
9.90 |
9.50 |
0.00 |
IFB1/2016/9
(IFB10) |
May-25 |
10.00 |
9.60 |
0.00 |
IFB1/2015/12
(IFB8) |
Mar-27 |
10.00 |
9.35 |
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 |
12.20 |
11.80 |
-0.07 |
XIFB1/2018/20
(IFB15) |
Oct-38 |
12.00 |
11.80 |
0.00 |
IFB1/2019/25
(IFB16) |
Feb-44 |
12.50 |
12.15 |
0.00 |
IFB1/2019/16
(IFB17) |
Oct-35 |
12.40 |
12.10 |
0.00 |
IFB1/2020/9
(IFB18) |
Apr-29 |
11.10 |
10.90 |
0.10 |
IFB1/2020/6
(IFB19) |
May-26 |
10.00 |
9.70 |
0.00 |
IFB1/2020/11
(IFB20) |
Aug-31 |
12.00 |
11.70 |
-0.05 |
IFB1/2021/16
(IFB21) |
Jan-37 |
12.30 |
12.20 |
-0.07 |
IFB1/2021/18
(IFB22) |
Mar-39 |
12.45 |
12.25 |
0.03 |
IFB1/2021/21
(IFB23) |
Aug-42 |
12.55 |
12.45 |
0.00 |
|
|
| Key Interest Rates |
|
Mov (bps) |
| O/N Interbank |
5.3230% |
-64.22 |
| 91 Day T-bill |
7.271% |
0.70 |
| 182 Day T-bill |
8.095% |
11.30 |
| 364 Day T-bill |
9.367% |
10.20 |
| Inflation |
5.80% |
-65.00 |
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