Skip to content
Market News

Liquidity Dips To 4.4% In January On Favorable Money Markets

BY Juma · February 3, 2020 10:02 am

Liquidity in the money markets remained favorable during the month of January with the average interbank declining to 4.4 percent from 5.8 percent recorded in December.

The decline in liquidity, according to Cytonn Investments was supported by Government open market activities, which offset tax payments.

During the week, the average interbank rate rose to 4.4 percent from 3.9 percent recorded the previous week, pointing to tightening liquidity in the money markets.

The average interbank volumes rose by 35.9 percent to 17.9 billion shillings from 13.2 billion shillings recorded the previous week.

Kenya Eurobonds

According to Reuters, the yield on the 10-year Eurobond issued in June 2014 decreased by 0.1 percent points to 4.7 percent in January, from 4.8 percent in December 2019.

During the week, the yield on the 10-year Eurobond decreased by 0.1 percentage points to 4.7 percent from 4.8 percent recorded the previous week.

“We attribute the decline across the Eurobonds to the adoption of a looser monetary policy regime in the Eurozone and the United States, thus leading to a decline in yields in advanced economies,” said Cytonn Investments.

As a result, there was increased investor interest in Africa’s debt market, which increased demand pushing the prices up and consequently the yield down.

During the month, the yields on the 10-year issued in February 2018 increased by 0.1 percentage points to close at 6.0 percent from 5.9 percent in December.

The 30-year Eurobond issued in February 2018 declined by 0.1 percentage points to close at 7.6 percent from 7.7 percent in December.

During the week, the yield on the 10-year Eurobond increased by 0.1 percent points to close at 6.0 percent from 5.9 percent recorded the previous week. The 30-year Eurobond remained unchanged at 7.6 percent.

During the month, the yields on the newly issued dual-tranche Eurobond with 7-years increased by 0.2 percent points to 5.8 percent from 5.6 percent in December 2019.

The 12-year Eurobond remained unchanged at 6.9 percent. During the week, the yields on both the 7-year and 12-year Eurobond increased by 0.1 percent points to 5.8 percent and 6.9 percent from 5.7 percent and 6.8 percent recorded the previous week.

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it. (020) 528 0222 or Email: info@sokodirectory.com

Trending Stories
Headlines Jubilee Health Insurance Launches Its First Center of Excellence, Agency Office; Empowering Agents To Bridge Kenya’s Healthcare Gap Soko Directory Team
Government and Policy TSC Announces JSS Vacancies, Requirements And How To Apply Getrude Mathayo
Entrepreneur's Corner James Mwangi Joins The Council Of Foreign Relations Board To Amplify African Opportunities Soko Directory Team
Lifestyle 20X Entrepreneur Launches ‘Chanuka, Jipange Na Opportunities’ Initiative To Empower Kenya’s Informal Sector Soko Directory Team
Government and Policy In Two Years of President Ibrahim Traoré: The Renaissance Of Burkina Faso And The Dawn Of An African Awakening Steve Biko Wafula
Related Articles
Market News Land Invasion And Grabbing In Large Scale Tea Producer Estates Intensifies In Kenya Soko Directory Team
Market News CBK’s 8.3-Year-Bond Oversubscribed, Ksh 59 Billion Worth Of Bids Received Soko Directory Team
Market News T-Bills Record First Undersubscription In Two Weeks As Kenyans Go For Shorter Tenors Soko Directory Team
Market News Kenya Airways Sustains Rising Streak, Ends The Day As Top Gainer Soko Directory Team
Market News Government Borrowing in FY24/25: A Closer Look at Progress And Market Dynamics Soko Directory Team
Explore Soko Directory
Banking Blogging Commodity Watch Did you know Entertainment Entrepreneur's Corner Feature Government and Policy Headlines Investment Lifestyle Market News Money Opinion Press Releases Stock Watch Technology
Soko Directory Archives