Monetary Regulator Intervenes in Face of Excess Liquidity

Secondary Market: Trading in the secondary market was subdued during the week’s final trading session. Bond turnover dipped to KES 166 million from KES 232 million the previous day, with only nine transactions, of which majority of the deals were odd lots. We expect trading to remain mellow this week as the treasury and central bank committee meet to review August performance and announce the bond offer for the month.

Money Market: The monetary regulator intervened in the money market as liquidity has been In excess. Sums of KES 9.45 billion 14 day TADs were accepted on Friday. The USDKES exchange rate closed the week’s trading on a feeble note touching the 105 level as the dollar rallied on good jobs’ and unemployment data.

Upcoming Auctions

• 9th September 2015 – KES 3.0Bn 182 & KES 4.0BN 364-day T-bills

• 10th September 2015 – KES 1 Bn 91 day T-bills