The Markets

NAIROBI (Capital Markets in Africa) – Kenya’s 91-day Treasury Bills yield dropped to the lowest in about 15 years as banks sought safer assets amid the coronavirus pandemic. The weighted average yield of the notes was at 6.513% at last week’s auction, the lowest since September 2006, according to Central Bank of Kenya data. The rate for 182-day bills was 7.046% and 364-day securities at 7.418%. “High liquidity has been attributed to cautiousness by banks amid the…

LAGOS (Capital Markets in Africa) – Bitcoin pulled back to around $40,000 after climbing over the weekend to the highest levels since May. The largest cryptocurrency fell about 4.8% to $39,280 as of 8:42 a.m. in New York after dropping as much as 5.6% Monday. Other virtual coins including second-ranked Ether also fell. Analysts suggested profit-taking lay behind the declines. This is “just a normal pullback following bullish action,” said Vijay Ayyar, head of Asia Pacific…

LAGOS (Capital Markets in Africa) – Gold is primed to surge to fresh highs as the risks around central banks unwinding massive stimulus are under-appreciated by investors, said a fund manager who forecast the metal’s ascent to a record last year. Diego Parrilla, who manages the $250 million Quadriga Igneo fund, said there isn’t widespread awareness of the long-term damage that’s been caused by ultra-loose monetary and fiscal policies. Artificially low interest rates have created…

LAGOS (Capital Markets in Africa) – Some of the assets most exposed to fears around the spread of the delta variant are luring traders with tempting signals of strength and stability. Emerging-market corporate earnings have outpaced estimates for the first time in 30 months amid an economic rebound in developing nations. Meanwhile, MSCI’s index of emerging currencies remains up this year, defying the declines seen this month. Stocks fell 2.2% today, erasing this year’s gains as China’s widening-technology-sector crackdown weighed on…

ADDIS ABABA (Capital Markets in Africa) – Ethiopian bonds plunged, sending yields to the highest in more than a year, as the nine-month conflict in the Tigray region spilled into a neighboring area. The chief administrator of Ethiopia’s Amhara region on Sunday issued a call to arms to defend his territory against rebels advancing southwards from Tigray. Fighting has already spread to the Afar region on Tigray’s eastern border, jeopardizing a key trade artery that…

LAGOS (Capital Markets in Africa) – Bitcoin held around $32,000 in a consolidation of a rebound stoked by comments from Elon Musk, Jack Dorsey and Cathie Wood on the future of the largest cryptocurrency. The digital asset traded near $32,000 as of 10:35 a.m. in Singapore on Thursday after jumping 6.5% a day earlier. Other cryptos, including Ether and Dogecoin, held onto gains, as did the Bloomberg Galaxy Crypto Index.Tesla Inc. already owns Bitcoin but Chief Executive…

LAGOS (Capital Markets in Africa) Asian stocks climbed Thursday after solid company earnings boosted Wall Street, easing concerns about peak economic growth and coronavirus flareups. The dollar held a decline. An MSCI Inc. gauge of Asia-Pacific shares rose for a second day, led by cyclical sectors like materials and energy, though technology also pushed higher. Hong Kong and Australia outperformed, while Japan is shut for a holiday. European contracts advanced and U.S. futures edged up…