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.
Upcoming Auctions
- 10th June 2015 – KES 3.0Bn 182 & KES 4.0BN 364-day T-bills
- 11th June 2015 – KES 1 Bn 91 day T-bills