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Money

Liquidity in the money market remains constrained

BY · June 26, 2015 07:06 am

Secondary Market: Secondary market activity accelerated following the close of the treasury bond auction earlier during the week. Bond turnover was recorded at KES 389.16 million with a total of 13 bond deals transacted.

Primary Market: Performance at the 2-Year and 5-Year auction held this week was shy of a 100%. The 2-Year locked in a rate of 12.629% whilst the 5-Year settled at 13.193%.

Money Market: Liquidity in the money market remained constrained signaled by the interbank rate which surged to 12.10%. The regulator sold REPOs and TADs actively and also sold dollars in the market in order to protect the KES. Consequently, the shilling made modest gains against the US Dollar (USD), strengthening by 0.15% to 98.50 (12:30pm GMT).

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