Auction Week
This month’s bond auction will be taking place this week. The CBK has re-opened the FXD1/2017/10Yr (4.5 years) and has offered a new 10Yr bond, FXD1/2023/10Yr, in a bid to secure KES 50Bn. My expectations are as follows:
- FXD1/2017/10Yr (4.5 years): average of market bids to come in within the 13.50% - 13.60% range. Average of accepted bids to come in around 13.40% – 13.45%
- FXD1/2023/10Yr (10.0 years): average of market bids to come in within the 14.05% - 14.15% range. Average of accepted bids to come in around the 13.95% - 14.00%
- Attached is the prospectus for all details needed to submit your bids
Away from the primary auction, 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.
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 week ahead!
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