Bonds maturity drops further on high rates

Despite the drop in bonds' time to maturity, the CBK says the refinancing risks for domestic debt remain low but have increased.

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The average time to maturity for government bonds dropped further to 7.3 years as of July 2024 on the low uptake of long-dated securities amid high interest rates.

The shortening of the average time to maturity points to a higher liquidity risk for the government as the term of outstanding bonds shortens as it is forced to meet redemptions on most papers within a shorter period.

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