The
shilling today continued to post losses against the greenback on the back
of surged demand for dollars from importers with relatively weak supply.
Since
Monday, the shilling lost battle to regain its primacy it gain for the last weeks
where it refuses to go below the 1,600/- mark against the US dollar.
Today,
the market closed at 1,596/1,606 after breaching a1, 600/- resistance last
Friday.
“The
local currency continued to post losses against the greenback…on the back of
continued demand for dollars from importers…,” National Microfinance Bank (NMB)
says today.
Standard
Chartered Bank says “shilling traded with some volatility yesterday as we saw a
slight upward tick in the exchange rate… (follows) some demand in the interbank
market”.
The
market, according to Standard Chartered Bank, interest return to bond markets
following overnight rates moving down and the liquidity increases.
“…We
have seen some interest return to the bond markets. The five, seven and ten
years bond, saw some interest on buying with yields moving down by 300 basic
points (bps) as sellers anticipate the decline of the curve,” the bank says.
Off
recently, five and seven years debt securities have been oversubscribed heavily
due to its high yield rates that are put to offset high inflation related
risks.
In
the last bond market the seven-year T-bond was oversubscribed four times after
investors tendered 104.35bn/-. The central bank offered 25bn/- only. The bond
had a price tag of 10.08 per cent.
Debt
markets expects are predicting that even the today’s auction for 10 years
government bond would be oversubscribed heavily mainly by pension funds. The bond
has 11.44 coupon rates and expects to have 16 per cent yield rate.
Source: tzexchange.blogspot.com
0 comments :
Post a Comment