Money Markets Prime Rates
Secondary Market: Trading in the secondary market improved during Monday’s trading session. Bond turnover rose to KES 622.3 million from KES 398.30 million with 14 deals transacted.
On a relative scale, bond turnover remained subdued as investor’s demonstrate a cautious attitude. The market is likely to take cue from the rate-decision after the MPC meeting which begins today.
Expectations point towards a rate hike ranging between 50-100bps targeted at supporting the local exchange rate.
Money Market: The money market was quiet during Monday’s trading session illustrated by a fall in traded volumes as well as a lower interbank rate relative to previous weeks as investor’s held positions.
The USDKES exchange rate weakened by 0.86% to 96.94 (12:30pm GMT) as traders noted considerable US Dollar demand from the telecommunications sector earlier during the day.
Upcoming Auctions:
- 3rd June 2015 – KES 3.0Bn 182 & KES 4.0BN 364-day T-bills
- 4th June 2015 – KES 1 Bn 91 day T-bills