The FXD2/2018/10Yr and the T-bills had very different primary outcomes this week. In the T-bill auction, CBK managed to lock in KES 32.288Bn, with interest heavily skewed towards the 91D T-bill. On the contrary, the CBK only managed to lock in KES 3.36Bn from the FXD2/2018/10Yr even with the average rate accepted being a very attractive 14.366%. Market’s preference for the shorter dated options in the debt space points to a higher risk aversion in play within current environment. Attached are both the T-bill and the FXD2/2018/10Yr auction results for your perusal.
Before we break for the long Easter weekend, below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting and enjoy the Easter 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
13.20
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
13.50
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
0.00
Key Interest Rates
Mov (bps)
O/N Interbank
8.0317%
7.81
91 Day T-bill
10.004%
9.70
182 Day T-bill
10.368%
-3.10
364 Day T-bill
10.857%
5.70
Central Bank Rate (CBR)
9.50%
75.00
Inflation
9.19%
-4.00
Attached are the bond positions available today, the T-bill & FXD2/2018/10Yr auction results and the April 2023 Bond Auction prospectus.
