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Browsing: Monetary Policy Tightening Kenya
- Rising volatility in Kenya’s Fixed Income Market derives from a combination of global and domestic factors.
- The yield curve soared fastest at the head and upper belly of the curve, rising by a cumulative 661bps on the three-month treasury bill.
- There is hope as it is anticipated, that a rebound in trading activity will happen in 2024.
The Kenyan Fixed Income Market displayed remarkable flexibility last year to experience one of the most rapid annual increases in yields resulting in a notable inversion of the effective yield curve.
According to financial experts, the rising volatility in the fixed income space derives from a combination of global and domestic factors.
On the external front, the rapid monetary policy tightening in 2022 and 2023 led investors to price-in bearish capital gain expectations for bonds.
On the domestic front, the rising concerns around fiscal sustainability indicators, coupled with an elevated inflationary regime in …
