Monetary Regulator Intervenes in the Money Market

Secondary Market: Trading in the secondary market accelerated during Wednesday trading session as bond turnover grew to KES 990 million from KES 402.80 million. Investors actively traded bonds in the intermediate term tenor whose yields have slightly adjusted downwards. We anticipate active trading in the secondary market for the remaining part of the week as liquidity in the money market remains robust.

Money Market: The monetary regulator intervened in the money market yesterday with reverse REPOS worth KES 16 Billion. The liquid environment in the money market, though uneven, has dampened the previous gains made by the KES, registering losses against all-but-two of its foreign comparables. The local currency dropped 0.02% against the US Dollar, as the latter was propped by a positive Core Consumer Price Index and precisely forecasted building permits (for the month October).

Upcoming Auctions:

• 18th November 2015 – KES 4.0Bn 182-day T-bills & KES 4.0Bn 364-day T-bills

• 19th November 2015 – KES 4.0Bn 91-day T-bills LIBOR Rates