The Uganda Shilling remained stable for most of the trading session, opening the week in the range of 3788/98 and closing at 3785/95 on the back of hard currency flows from the treasury auction and commodity exports amid depressed importer demand for forex.
In the fixed income segment, the market continued its appeal, attracting huge uptake from an investor base that was largely domestic and some trickle in from offshore. Yields dropped slightly as compared to the previous treasury auction, printing at 8.604%, 10.711% and 12.267% for the 91, 182 and 364-day tenors.
Amount on offer was UGX140 billion, with the tendered amount in excess of UGX324 billion- an oversubscription of UGX184 billion.
Regional and global markets
The Kenyan Shilling firmed on account of tight liquidity conditions in the money market as investors kept an eye on disbursements from donors that were expected to improve the supply of forex. Trading was in the range of 106.75/95. While in South Africa, the Rand edged up as global risk appetite improved hopes of an economic bounce back, though markets remained cautious ahead of the South African Reserve Bank policy pronouncement.
