According to Absa, liquidity remained tight in the money markets, a condition attributed to the spillover effect of end-of-year tax remittances. Overnight yields were observed to trade at averages of 10.96%, contributing to an overall muted atmosphere.
Absa Bank reported that the local currency maintained a range bound trajectory on Wednesday, navigating within the 3795/3805 range throughout the trading session. Traders noted the absence of significant fluctuations during this overall quiet market day.
The financial landscape is characterized by the impending activities of the Bank of Uganda, which is slated to conduct a treasury bill auction on January 17, 2024, with an estimated value of sh235 billion. This upcoming event adds an element of anticipation to the financial sector, as market participants observe for potential impacts on liquidity and yields.
