Investment

Liquidity In Kenya’s Money Market Still Relatively Stable

BY Soko Directory Team · October 4, 2021 09:10 am

KEY POINTS

The average volumes traded in the interbank market increased by 3.6 percent to 10.3 billion shillings, from 9.9 billion shillings recorded in the previous quarter.

During the quarter, liquidity in the money market remained relatively stable, with the average interbank rate increasing marginally by 0.1 percentage points to 4.9 percent, from 4.8 percent recorded the previous quarter.

Additionally, the average volumes traded in the interbank market increased by 3.6 percent to 10.3 billion shillings, from 9.9 billion shillings recorded in the previous quarter.

During the week, liquidity in the money market tightened, with the average interbank rate increasing to 6.7 percent, from 6.1 percent recorded the previous week, attributable to a build-up of bank balances ahead of the quarter-end reporting as well anticipatory quarterly tax remittances.

The average interbank volumes traded declined by 32.1 percent to 8.3 billion shillings, from 16.9 billion shillings recorded the previous week.

Kenya Eurobonds:

Yields on the Kenyan Eurobonds recorded a mixed performance during the quarter, with the yields in the 12-year Eurobond issued in 2019, 7-year Eurobond issued in 2019, and the 12-year Eurobond issued in 2021 all increasing by 0.2 percentage points, while the 10-year Eurobonds issued in 2014 and 2018 declined by 0.3 percent and 0.03 percentage points, respectively.

The mixed performance points to the fact that investors are still seeking direction as they try to assess Kenya’s economic recovery amidst the uncertainty brought about by the ongoing pandemic coupled with slow vaccine rollout in the country.

During the quarter, the yield on the 10-year Eurobond issued in 2014, decreased by 0.3 percentage points to close at 3.0 percent, from 3.3 percent recorded in Q2’2021.

During the week, the yield on the 10-year Eurobond issued in 2014 decreased by 0.1 percentage points to 3.0 percent, from 3.1 percent recorded last week.

During the quarter, the yield on the 30-year Eurobond issued in 2018 increased by 0.1 percentage points close at 7.5 percent, from 7.4 percent at the end of Q2’2021, while the 10-year Eurobond issued in 2018, declined marginally by 0.03 percentage points to close at 5.40 percent in Q3’2021, from 5.37 percent at the end of Q2’2021.

During the week, the yield on the 30-year Eurobond issued in 2018 increased by 0.1 percentage points to 7.5 percent, from 7.4% recorded last week, while the yield on the 10-year Eurobond increased marginally by 0.04% points to 5.40%, from the 5.36% recorded last week.

About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory