YOUR WEEKLY MARKET INSIGHTS

The Global Fixed Income Market Update:

Recent developments in global trade, particularly the "Liberation Day" (April 2) announcements, are reshaping market dynamics. Gold prices have surged to new highs, reaching $3,148.88 per ounce, as investors seek safe havens due to rising inflation and geopolitical tensions. This reflects a broader trend where market investors are increasingly prioritizing stability and security.

In the U.S., concerns over fiscal health are growing, with Moody’s highlighting risks around government debt sustainability. President Trump's proposed tax cuts and tariffs could further strain government finances, adding to the uncertainty.

Locally, Kenya’s bond yields continue to fall, with the 91-day and 364-day treasury bills at 8.62% and 10.38%, respectively. This is a result of accommodative monetary policies and ample liquidity in the money market. Commercial banks’ reserves remain high, currently at KSh 16 billion.

African sovereign bond issuers, such as Angola, are proceeding cautiously. Angola recently postponed a $1.5B Eurobond issuance despite improvements in debt-to-GDP ratios. Meanwhile, Eurobonds from sub-Saharan African countries, including Kenya, Zambia, and Angola, show mixed performance, with Kenya underperforming.

At Nabo, our Fixed Income strategies continue to provide strong returns by maintaining disciplined risk management and strategically allocating bonds, even in this volatile market.

Fixed Income Pulse

---

Equity Markets: A Volatile Landscape with Opportunities

Gold continues to shine amid global uncertainty, driven by safe-haven demand and central bank purchases. Prices have climbed toward USD 3,100 per ounce, with the current quarter marking the best performance since 1986.

The global equities market has experienced volatility this week, largely due to fears surrounding new U.S. tariffs. Despite a potential value opportunity in U.S. equities, many investors are retreating from the U.S. stock market, seeking safer options. This shift in sentiment calls for strategic rebalancing of investment portfolios. NABO recommends reducing exposure to U.S. equities and instead focusing on high-quality stocks with strong global exposure and consistent dividend payouts.

African markets remain volatile, with Malawi standing out as the top-performing market year-to-date (YTD) in 2025, up by 69.5%. NABO’s equity strategies are navigating these challenges successfully, with our Balanced Fund delivering a solid YTD return of 5.64%, benefiting from strong holdings like KenGen, up by 17.6% YTD. Our Equity Fund has faced more difficult conditions, with a modest YTD return of 0.84%, but our active management approach and local expertise position us well to capitalize on emerging opportunities.

Equity Pulse

---

LOOKING AHEAD

As the market adjusts to the implications of Trump's tariff policies, we will be closely monitoring central bank statements, inflation data, and corporate earnings reports for insights into future market directions. For clients seeking to protect their investments from volatility while still pursuing growth, we recommend exploring our diversified strategies, which focus on both African market opportunities and strategic global positioning.

For more detailed insights and investment opportunities amid these shifting dynamics, we invite you to explore our in-depth Fixed Income and Equity reports.

Author: Charles Miano