Shilling trades stable ahead of bond auction
Market activity was largely driven by portfolio inflows ahead of the January 7 treasury bond auction, which largely matched demand from entities in the manufacturing and energy sectors, traders said.
The local currency is expected to trade within the 3,580–3,645 range in the near term.
KAMPALA - The Uganda shilling was largely stable in Tuesday’s trading session, closing at 3,615/3,625, compared to opening levels of 3,617/3,627.
Market activity was largely driven by portfolio inflows ahead of the January 7 treasury bond auction, which largely matched demand from entities in the manufacturing and energy sectors, traders said.
The local currency is expected to trade within the 3,580–3,645 range in the near term.
Liquidity in the money markets remained tight according to Absa market data with interbank overnight and one-week rates averaging 10.05% and 10.25%, respectively.
The Bank of Uganda will reopen benchmark 3-year, 10-year, and 20-year bonds in Wednesday’s auction.
Coupon payments of about sh1.255 trillion are expected to be disbursed this week, which could influence liquidity dynamics.