The Kenyan Shilling garners strength for a second consecutive session

Secondary Market: Activity in the secondary market shrunk during Friday’s trading session as investors held a cautious attitude after the Treasury increased its borrowing target for FY 2014/2015; as this is likely to push yields up further.

Bond turnover remained subdued at KES 398.30 million.

Money Market: Liquidity remained tight in the money market as the interbank rate remained in the 13% range.

The Kenyan Shilling garners strength for a second consecutive session last week posting the largest gain against the US Dollar (+0.73%) to settle at 96.11(12:30pm GMT).

We preserve a stable outlook for this week, where the KES is expected to trade steady with a strengthening bias and will to take cue from the outcome of the central bank’s rate-setting Monetary Policy Committee (MPC) meeting tomorrow.

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