Secondary bond trading rises further on falling interest rates

Bond prices and yields usually have an inverse relationship where a fall in yields results in higher prices for the same paper/security.

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Activity in the secondary bond market continues to rise since the start of 2025 as interest rates fall, making previously issued securities more attractive to investors on relatively higher yields to future issuances.

The turnover of the secondary bond trading market went up 41 percent in the first quarter to March 2025, reaching Sh651 billion from Sh459.4 billion at the same stage previously, according to data from the Nairobi Securities Exchange (NSE).

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Note: The results are not exact but very close to the actual.