GOVT BONDS SURGE

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By BUSINESS REPORTER

GOVERNMENT bonds recorded some gains following demand from offshore investors, Barclays bank Zambia has said.

The bank in its daily market update indicated that interest in bonds traded stronger.

“We also saw bids for 23s and 24s at 24.00 percent compared to 24.50 prevent in the previous session,” said the bank

Barclays also said Thursday’s money market trading session recorded growth in both trading activity and liquidity.

The bank said interbank traded volumes rose to K498 million from K405 million while market liquidity posted a 33 percent rise to close at K588 million.

“The average interbank cost of funds was unchanged at 9.92 percent as the increase in trading activity was balanced out by the rise in market liquidity,” said the bank.

On the financial market, the Kwacha posted gains against the dollar on Thursday after a series of stable trading sessions.

The USD/ZMW currency pair opened the day at K11.88/11.93, unchanged from its previous day’s close.

“Corporates converted foreign currency on the day to meet their tax obligations due on the 10th of every month which saw the local unit close 3 ngwee higher at K11.85/11.90 on the bid and offer respectively.

“The Kwacha is likely to extend its gains in today’s trading session on the back of healthy supply,” Barclays bank Zambia said.

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