Money Markets Remain Liquid As Interbank Rate Closes At 2.5%

The money market remained liquid during the week with the average interbank rate coming in at 2.5 percent, up from the 2.3 percent recorded the previous week and below the 2019 average of 4.3 percent.

The liquidity in the money markets was mainly supported by government payments and maturing TADS of 162.2 million shillings.

TADs are used when the securities held by the CBK for Repo purposes are exhausted or when CBK considers it desirable to offer longer tenor options.

The average interbank volumes declined by 55.7 percent to 10.3 billion shillings, from 23.2 billion shillings recorded the previous week.

According to the Central Bank of Kenya, commercial banks’ excess reserves came in at 23.2 billion shillings in relation to the 4.25 percent Cash Reserve Ratio.

According to Reuters, the yield on the 10-year Eurobond issued in June 2014 remained unchanged at 6.4 percent during the week, similar to what was recorded the previous week.

According to Reuters, the yield on the 10-year Eurobond issued in June 2014 remained unchanged at 6.4 percent during the week, similar to what was recorded the previous week.

The yields on the 10-year Eurobond issued in 2018 remained unchanged at 7.5 percent, similar to what was recorded the previous week.

The yield on the 30-year Eurobonds issued in 2018, on the other hand, increased marginally by 0.1% points to close at 8.5 percent, from the 8.4 percent recorded the previous week.

The yields on the 7-year Eurobond and 12-year Eurobond issued in 2019 remained unchanged at 7.4 and 8.2 percent respectively, similar to what was recorded the previous week.

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