Local Debt To Top Out, Gradually

Kenyan bond yields have rallied aggressively across the yield curve in recent weeks and months, owing to benign inflation, low interest rates and a well-received budget. We believe that investor appetite for Kenyan domestic bonds is well founded, but the rally will soon run out of steam owing to rising inflation over H210. Yet, as long as a return to high inflation is avoided, we expect yields on local government debt to rise only

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