NAIROBI (Reuters) - Kenya's shilling was steady against the dollar in quiet early trading on Friday, underpinned by rising debt bill yields following this week's steep interest rate rise and amid expectations of further central bank support for the currency. At 0721 GMT, commercial banks quoted the shilling at 97.00/50 against the dollar, barely changed from Thursday's close. "The shilling is holding for now. Not a single trade has gone through," said a trader at one commercial bank. "Markets are trying to digest increased rates before we can establish a direction." Traders said they expected the local currency to gain as liquidity stayed tight following the central bank's record rate rise earlier this week to 16.5 percent. The bank has also been mopping up shillings through repurchase agreements. Offshore investors were expected to take advantage of rising yields in the fixed income primary market, helping support the local currency. The weighted average yield on Kenya's 91-day Treasury bills rose to 15.743 percent from 15.313 percent at Thursday's auction. "We still see the local unit strengthening, aided by (high market rates) ...coupled with intervention by authorities," said Bank of Africa in a daily report.

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