Kenya Bond Market Update: 31 March 2023

Published on
March 31, 2023
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End Month Friday


The T-bill auction had an underwhelming performance as the CBK only managed to lock in KES 8.033Bn, well below their weekly KES 24Bn target. Attached are the results for your perusal. For next week’s T-bill auction, please note that submission of bids will close on Wednesday (05-April-2023) and the payment deadline will be on Tuesday (11-April-2023). These changes are in place because of the Easter weekend.

The FXD2/2018/10Yr (5.8 years) auction will be held next week. The sale period for this bond closes on Tuesday (04-April-2023). My expectations for this bond are as follows:
  • Average: 14.05% - 14.15%
  • Subscription: An under-subscription is expected
  • Attached is the bond prospectus for all the information required

For your trading activities ahead, below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting and enjoy the weekend 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 13.00 12.50 0.00
IFB1/2016/9 (IFB10) May-25 13.00 12.70 0.00
IFB1/2015/12 (IFB8) Mar-27 13.00 12.50 0.00
IFB1/2017/12 (IFB12) Feb-29 13.00 12.50 0.00
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 0.07
IFB1/2023/17 (IFB28) Feb-40 14.40 14.35 0.00
 
Key  Interest Rates   Mov (bps)
O/N Interbank 7.6879% 13.95
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 9.23% 25.00
 
Attached are the bond positions available today, T-bill auction results and the April 2023 Bond Auction prospectus.
 
Bond Positions
T-bill Auction Results
April 2023 Bond Auction
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