flows from commodities & portfolio funds targeting the bond market boost the Shilling

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The shilling traded with uptrend bias supported by sizeable flows mainly from commodities and portfolio funds targeting the bond market.
Market players quoted the shilling at 3540/50.

In the bond market, the 500 billion offer on the 5 and 20 year curve attracted overwhelming demand with yields holding at 13.409% and 15.950%.
The split in offer, providing a large amount for the 20 year tenor supports the strategy of extending the average maturity of the instruments aimed at managing debt service costs that have remained on the higher side.

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In the regional markets, the Kenya shilling was on soft ground trading at 108.05/25 and was expected to come under pressure on elevated demand.

In the global markets, the US dollar pared recent gains following comments made by the Federal Reserve Chairman that the US economy was still far off from the levels the Central Bank desire to see before tapering its monetary support.
Other major currencies were largely stable.

Interim trend for the shilling is likely to hold with market attention pinned on the lockdown effects and outturn on the demand side

Alpha Capital Forex Bureau: For competitive Forex Rates VISIT Plot 12 KAMPALA ROAD-CHAM TOWERS SUITE 43: call: 0414-580619, 0392-612648

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