A successful Tapping session for the CBK as they managed to close the Tap Sale of the IFB1/2023/6.5Yr earlier than expected. The CBK managed to lock in KES 47.238Bn, surpassing their KES 25Bn and therefore enabling them to close the Tap early. It was a busy day at the CBK headquarters as the Monetary Policy Committee (MPC) met yesterday and the committee decided to raise the Central Bank Rate (CBR) by 200bps, from 10.50% to 12.50%. The MPC based this decision on addressing the pressures on the exchange rate and therefore mitigating the negative effects from global prices. For more information on the MPC’s decision, here is a link to the CBK Governor’s MPC briefing that is already underway: https://www.youtube.com/watch?v=GVkvl5Ydf50. Both the Tap Sale results and the MPC Press Release Statement are attached for your perusal. In conclusion, below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting!
Below are the two-way quotes for the benchmark tenors:
Indicative Two-Way Quotes - Benchmark Tenors
Benchmark Tenor
Bid (%)
Offer (%)
Mov (t-t0)%
1Yr
16.25
15.75
0.00
2Yr
18.00
17.75
0.00
5yr
18.50
18.00
0.00
10yr
17.00
16.50
0.00
15yr
16.50
16.00
0.00
20yr
16.50
16.00
0.00
25yr
16.50
16.00
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
15.50
15.00
0.00
IFB1/2016/9 (IFB10)
May-25
15.50
15.00
0.00
IFB1/2015/12 (IFB8)
Mar-27
13.80
13.70
0.00
IFB1/2017/12 (IFB12)
Feb-29
16.00
15.00
0.00
IFB1/2016/15 (IFB11)
Oct-31
16.00
15.50
0.00
IFB1/2018/15 (IFB14)
Jan-33
17.50
17.00
0.50
IFB1/2018/20 (IFB15)
Oct-38
15.50
15.00
0.00
IFB1/2019/25 (IFB16)
Feb-44
16.50
16.00
0.00
IFB1/2019/16 (IFB17)
Oct-35
15.50
15.20
0.00
IFB1/2020/9 (IFB18)
Apr-29
14.75
14.50
0.00
IFB1/2020/6 (IFB19)
May-26
13.50
12.75
0.00
IFB1/2020/11 (IFB20)
Aug-31
15.50
15.00
0.00
IFB1/2021/16 (IFB21)
Jan-37
17.00
16.50
0.00
IFB1/2021/18 (IFB22)
Mar-39
17.00
16.50
0.00
IFB1/2021/21 (IFB23)
Aug-42
17.00
16.00
0.00
IFB1/2022/19 (IFB24)
Jan-41
17.00
16.50
0.00
IFB1/2022/18 (IFB25)
May-40
17.00
16.50
0.00
IFB1/2022/14 (IFB26)
Oct-36
17.00
16.50
0.00
IFB1/2022/6 (IFB27)
Nov-28
17.00
16.00
0.00
IFB1/2023/17 (IFB28)
Feb-40
17.00
16.50
0.00
IFB1/2023/7 (IFB29)
Jun-30
17.00
16.00
0.20
IFB1/2023/6.5 (IFB30)
May-30
17.95
17.75
0.00
Key Interest Rates
Mov (bps)
O/N Interbank
10.3924%
-10.13
91 Day T-bill
15.5293%
8.67
182 Day T-bill
15.5504%
10.59
364 Day T-bill
15.7266%
14.38
Central Bank Rate (CBR)
12.50%
200.00
Inflation
6.80%
-10.00
Attached are the bond positions available today, the MPC Press Statement and the IFB1/2023/6.5Yr Tap Sale Results.
