Liquidity For February At 4.4% On CBK’s Mopping Up Activities

Liquidity in the money markets remained favorable during the month of February, with the average interbank rate remaining unchanged at 4.4 percent.

According to a report by Cytonn Investments, covering the month of February, the liquidity in the money markets was supported by government open market activities with the CBK engaging in mopping up activities through repurchase agreements to ease up liquidity, which offset tax payments.

During the week, the average interbank rate declined to 4.1 percent from 4.2 percent recorded the previous week, pointing to improved liquidity in the money markets.

The average interbank volumes rose by 79.0 percent to 15.7 billion shillings from 8.8 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 4.6 percent in February, from 4.7 percent in January 2020.

During the week, the yield on the 10-year Eurobond increased by 0.1 percent points to 4.6 percent from 4.5 percent recorded the previous week.

During the month, the yields on the 10-year and 30-year Eurobonds issued in February 2018 both increased by 0.1 percent points to close at 5.9 percent and 7.5 percent in February from 6.0 percent and 7.6 percent, respectively, in January 2020.

During the week, the yields on the 10-year and 30-year Eurobonds increased by 0.4 percent points to close at 5.9 percent and 7.5 percent respectively, from 5.5 percent and 7.1 percent recorded the previous week.

During the month, the yield on the 7-year Eurobond issued in 2019 remained unchanged at 5.6 percent similar to what was recorded in January 2020.

The yield on the 12-year Eurobond however declined by 0.1 percentage points to 6.8 percent from 6.9 percent in January 2020.

During the week, the yield on the 7-year Eurobond declined by 0.3 percentage points to 5.6 percent from 5.3 percent the previous week, while the 12-year Eurobond declined by 0.6 percentage points to 6.8 percent from 6.2 percent recorded the previous week.

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