Interbank rate descends to 9.29% as liquidity eases

Secondary Market: Trading in the secondary market subdued during Thursday’s trading session with bond turnover recording KES 896.5 million from KES 2.50 billion the previous day.

Trades on the infrastructure bonds accounted for the largest chunk of volumes. We expect trading in the secondary market to remain mellow in the coming week as investors shift focus to the primary market where the treasury will auction the FXD3/2014/2 & FXD1/2014/10 on 19th May 2015

Money Market: The interbank rate descended to 9.29% as liquidity in the money market eased. Meanwhile, The Kenyan Shilling (KES) gained against the US Dollar (USD) by 0.01% to KES. 96.05, despite domestic dollar pressure.

Upcoming Auctions:

• 13th May 2015 – KES 3.0Bn 182 & KES 4.0BN 364-day T-bills

• 14th May 2015 – KES 1 Bn 91 day T-bills