Kenya’s 10-year treasury yields rise
Kenya’s ten-year treasury bond fetched a higher yield in this week’s auction as Central Bank notes that investors are disposing old stocks to buy cheaper bonds on offer in the primary market.
Thu, 21 Sep 2017 14:35:12 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The Central Bank's decision to maintain interest rates at 10% came as a surprise to the market, with investors closely watching for signals about the future economic outlook.
- The surge in demand for short-term bonds, driven by liquidity in the market and anticipation of changes in the interest rate cap, has led to heightened trading activity.
- The impact of currency fluctuations on the bond market remains a key concern, as regulatory interventions to stabilize the market could influence yields and trading conditions.
Kenya's ten-year treasury bond yields surged in the latest auction, with the Central Bank indicating that investors are favoring cheaper bonds over older stocks in the primary market. Kenneth Majora, the Head of Securities at Genghis Capital, shed light on the market dynamics and the factors influencing this trend. In a recent interview with CNBC Africa, Majora discussed the implications of the Central Bank's decision to maintain the interest rates at 10% and the impact of currency fluctuations on the bond market. The bond market in Kenya has witnessed a significant increase in demand, particularly for short-term bonds, driven by ample liquidity in the market. Banks, which hold a substantial market share in fixed income investments, are opting for shorter duration bonds to mitigate risks amid uncertain market conditions.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.
