Investors Remain Attracted Short-end Bonds in Monday’s Session

Market activity on Monday centered on the short-end of the yield curve as well as the longer-dated IFBs.

Investors remain attracted to IFB1/2017/12 at 11.80/70 and IFB1/2018/15 at 11.85/75 according to analysts from Genghis Capital.

Trades worth 2 billion shillings were executed as the week kicked off on the exchange with the weighting heavily on 3-year bonds and the infrastructure bonds.

“We believe there is still an opportunity in the 3-year tenors at levels of 11.90% and above,” said Genghis Capital.

The Central Bank of Kenya sat out of the repo market on Monday citing a square market after mopping up 10 billion shillings on Friday.

The shilling weakened slightly in the day on Monday but closed flat at 100.7 and analysts expect it to hold in Tuesday’s session.

The overnight rate closed slightly higher at 4.5 percent over last week’s close at 4.3 percent. The interbank range, however, remained flat at low of 3 percent and high of 9 percent.