What a month January 2020 was for the Bond Market in Zambia. The opening month of Government bond trading saw week 3 being the highest performing in terms of number of trades and sales.
A closer look at the behavior of capital in the market reveals that investors were more keen on the 5-year bond which had a yield to maturity (YTM), on average, of 29.29%. This is the second-highest yield on bonds on offer as curiously enough, capital avoided the shorter-term 3-year bond that a handsome yield to maturing, on average, of 36.65%.
When compared to January 2019, the total face value of bonds available increased by 103%. This saw bond sales figures increase by 66% in January 2020. With a much stronger opening start to the year, domestic capital appears to be on the rebound save of week three being an outlier amongst the other 4 weeks of trading.