Kenya Bond Market Update: 9 February 2023

Published on
February 9, 2023
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Result Thursday


My crystal ball is definitely defective as my expectations were way off on this one. I’m reading through the after-sale benefits to make sure I can get a replacement before the next auction. For a quick summary of how the auction went, please have a look below:
  • FXD1/2017/10Yr (4.5 years): average of 13.875% on the back of KES 7.469Bn in bids accepted from a total of KES 8.030Bn in bids received
  • FXD1/2023/10Yr (10.0 years): average of 14.151% on the back of KES 9.279Bn in bids accepted from a total of KES 11.514Bn in bids received
  • Subscription: Significantly undersubscribed as KES 16.748Bn in bids accepted from a total of KES 19.545Bn in bids received. This is way below the targeted KES 50bn set for this auction
Away from the primary auction and my inaccurate predictions, 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 10.75 10.25 0.25
2Yr 12.80 12.50 0.00
5yr 13.90 13.70 0.20
10yr 14.25 14.15 0.32
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 12.50 12.00 0.00
IFB1/2016/9 (IFB10) May-25 12.50 12.00 0.00
IFB1/2015/12 (IFB8) Mar-27 12.50 12.00 0.00
IFB1/2017/12 (IFB12) Feb-29 12.80 12.00 0.00
IFB1/2016/15 (IFB11) Oct-31 13.20 12.70 0.00
IFB1/2018/15 (IFB14) Jan-33 13.60 13.20 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 13.50 13.00 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 0.03
IFB1/2022/6 (IFB27) Nov-28 13.20 13.15 0.00
 
 
Key  Interest Rates   Mov (bps)
O/N Interbank 6.5307% -1.99
91 Day T-bill 9.581% 4.30
182 Day T-bill 9.997% 4.30
364 Day T-bill 10.550% 4.60
Inflation 8.98% -8.00
 
 
Attached are the bond positions available today and the bond auction results for this month.
Bond Positions Available Today
Bond Auction Results
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