Fixed Income & Money Market Update: 10th March 2015

Secondary Market: Secondary market trading remained robust during Tuesday’s trading session with bond turnover recording volumes of KES 3.48 billion. Investors heavily traded the FXD3/2013/5Year recording volumes of KES 700 million.

Money Market: The monetary regulator intervened in the money market yet again on Tuesday, this time offering TADs and REPOs worth KES 15 billion. Consequently, the interbank rate rose marginally to 5.86%. The USDKES pair shed 0.17% to 91.60 during Tuesday’s session, largely due to increased corporate demand for dollars outweighing foreign investor inflows from the infrastructure bond.

Upcoming Auctions

• 11th March 2015 – KES 3.0Bn 182-day T-bills & KES 4.0Bn 364-day T-bills
• 12th March 2015 – KES 1.0Bn 91-day T-bills