Daily Market Update

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MARKET UPDATE FOR 19th August 2019

LOCAL MARKET

USD/KES

The shilling weakened against the dollar on Friday due to increased dollar demand in the market surpassing supply. Expected trading range today will be between 102.80 –103.80.

INDICATIVE FOREX RATES
CROSS RATES AGAINST KES
USD 102.30 104.20
GBP 1.2005 1.2406 122.81 129.27
EUR 1.0939 1.1243 111.91 117.15
JPY 104.85 107.87 0.9484 0.9938
ZAR 13.752 16.782 6.10 7.58
CHF 0.9745 0.9846 103.90 106.93
SEK 9.4629 9.8667 10.37 11.01
CAD 1.3223 1.3326 76.77 78.80
KES/UGX 3650 3750 35.03 36.66
KES/TZS 2249 2351 21.58 22.98

MONEY MARKET

CBK analysis on Friday showed excess liquidity. The regulator was therefore in the market to mop KES. 25B in 6 days repo.

LOCAL MONEY MARKET
TREASURY BILLS AND BONDS (MIO KES)
Tenor 91-day 182-day 364-day
Amount Offered 4,000.00 10,000.00 10,000.00
Bids Received 2,753.24 2,939.24 15,149.39
Amount Accepted 2,753.24 2,939.24 15,071.40
Current Rate 6.355% 7.052% 9.195%
Previous Rate 6.449% 7.154% 9.152%

GLOBAL MARKETS

The U.S. dollar was flat on Monday as traders remained cautious ahead of Fed minutes due later this week. All eyes will be on the Federal Reserve this week as traders await fresh insights on how the central bank may respond to growing fears of a recession after the U.S. Treasury yield inverted last week.

The Euro is currently trading at 1.1088. The common currency could rise if German yields chart recovery on fiscal stimulus hopes. The yield on the German 10-year bond yield remained under pressure throughout the last week as investors piled into safe-haven assets on fears of a European recession.

The Pound carries previous strength gained last week forward as British lawmakers, including Cabinet’s Brexit Minister Michael Gove and the Energy Minister Kwasi Kwarteng, term the leak of Yellow hammer report as an act of scaremongering ahead of the UK Prime Minister (PM) Boris Johnson’s visit to the EU.

Source: Reuters

LOCAL AND INTERNATIONAL BENCHMARK RATES
Local Inflation 4.14%
KES CBR 9.00%
GBP BOE RATE 0.75%
EUR ECB RATE 0.00%
USD FED RATE 2.5%
$ LIBOR 6 & 12 Month 2.01675/1.94500
£ LIBOR 6 & 12 Month 0.80975/0.86325
€ LIBOR 6 & 12 Month -0.45171/-0.42771

For firm quotes and more information on other treasury products kindly contact our treasury team. Treasury team: Jackline Muchangi, Sylvia Mwangi, Benson Wainaina, Cleophas Makori, Alfred Too, Kenneth Mulandi, Lorna Kageni and Martin Githinji.
Telephone Contacts: 020 3275 XXX; EXT.244/221/185/180/550/378/257/558
Mobile Lines: 0703 058 XXX; EXT.244/221/185/180/550/378/257/558
Email: dealing@boakenya.com

Disclaimer
Whilst every care has been taken in compiling this market update, the Bank will not be responsible for and shall be exempt from all liabilities in respect of any loss of any kind whatsoever, incurred by any persons as a consequence of relying on the above information or otherwise.

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