Five-year bond awaits warm market

The auctioning of five-year Treasury bond on Wednesday remains to be seen well received if the positive sentiment continues along the curve, market analyst has said.

The prediction is based on the fact that overnight rates moved down and the liquidity increases to shift some interest return to the bond markets.

“Most trading books will be targeting the five year to add on some risk. Expected cut off 13.75 per cent,” Standard Chartered Bank said on its daily market report.

The interest shifts to the debt market, the shilling traded flat against the U.S. dollar on Monday as demand was well matched by supply in the interbank market. 

“Today (Tuesday) we expect a similar trend with low level of volatility,” the bank said.
The shilling trades between 1589.00 and 1598.86 in the last one week.

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