Fixed Income Market
The secondary debt market experienced some huge activity. Turnover increased by 181% compared to the previous session to stand at KES 6.980 Billion compared to Wednesday’s KES 2.483 Billion. Deals executed were 39.
The heavily traded bond of the session was the 12 yr Infrastructure Bond IFB 1/2011/12Yr which had a turnover of KES 1.7 Billion and traded on a 12.5% Yield. The bond has a fixed coupon of 12%
182 Day & 364 Day T-Bills
The weighted average yield on Kenya’s 182-day Treasury bills declined at an auction on Wednesday to 9.648 percent, from 9.799 percent last week, the central bank said.
The rate on the 364-day bills also declined to 10.844 percent from 11.049 percent.
The central bank had offered bills worth 12 billion shillings ($118.81 million) for sale and received bids worth a total 22.59 billion shillings. It accepted bids worth 13.23 billion shillings.
91 Day Treasury Bill
The 91 day Treasury bill fell to 7.303 percent compared to 7.477 percent last week.
The Central bank of Kenya received bids worth KES 6.67 Billion ($66 million) for the 4.00 billion shillings of bills offered. It accepted bids worth 4.67 billion shillings. The over-subscription level shows investors appetite on the short term bills which may be due to the fact that Equities have not been performing so well in general apart from a few counters.
Next week the bank will offer the three tenors of 91-, 182-, and 364-day notes worth a total 16 billion shillings
Sources: (NSE, Reuters, CBK, Kenyan Wall Street)
