Interbank rate edges up as liquidity in the market tightens

Secondary Market: Trading in the secondary market was steady with a bond turnover of KES 1.23 billion from KES 1.30 billion with a total of 21 bond deals transacted. The FXD1/2012/20Yr recorded the highest traded volumes worth KES 400 million.

Money Market: The interbank rate edged up as liquidity in the money market tightened as the monetary regulator mopped up liquidity from the money market. The overnight window borrowing rate has been revised to 16% from the previous 14%. Banks have been active over the overnight window as liquidity circulation is currently disproportionate. We expect liquidity to remain tight in the coming days as the tax payment deadline for businesses draws closer.

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