Bond market turnover increased 150% as investors prepare for debt exchange programme

Total market turnover on the bond market increased by 150.30% to ¢1.17 billion during the week under review as more bond transfers were recorded.

The bond transfers are said to be in preparation for the Domestic Debt Exchange programme.

Fund managers in recent times have been moving funds from one account to another as investors consider the Domestic Debt Exchange programme.

According to market data, bond market activity was mainly concentrated in the lower yield curve with a trade concentration of 41%.

August 27, 2022, November 26, 2022 and January 3, 2023, saw more activity with total volumes of ¢112.32 million, ¢255.35 million and ¢191.75 million respectively.

Analysts believe the secondary market will remain quiet as investors decide on participating in the domestic debt exchange.

Corporate bonds will, however, continue to attract demand, but with very little selling interest and continued demand for Treasury bills.

Meanwhile, a 3-year at a yield of 28.50% will mature in March 2023.