Demand for 5 Year Bond Remains Robust

Secondary Market: Trading in the secondary market edged up to KES 580 million but only five bond deals were transacted over the day. Investors have been selective on bonds traded, displaying interest on the short end, as demand for the 5 Year bond remained robust.

Money Market: The money market remained liquid with the interbank rate settled in the 15% bracket. Traded volumes were also robust. The USDKES exchange rate shed 0.50% to 103.70 (12:30pm GMT), dampened by month end dollar demand from importers as well as improved liquidity in the money market. The local unit is also taking a hit from global portfolio outflows which have severely affected emerging markets.

Upcoming Auctions

• 26th August 2015 – KES 3.0Bn 182 & KES 4.0BN 364-day T-bills

• 27th August 2015 – KES 1 Bn 91 day T-bills