DAR ES SALAAM, Oct. 13 -- LIQUIDITY is flowing freely in the bond market, pushing asset prices higher as investors scramble to secure returns amid stable policy rates and abundant cash reserves.

The surge in demand reflects a growing appetite for both fixed income and equities, in a financial system flush with confidence yet increasingly sensitive to shifts in market sentiment.

Alpha Capital Head of Business Development and Customer Service Geofrey Kamugisha told Daily News yesterday that such behaviour indicates a strategic preference for locking in current yields amid expectations of declining policy rates.

“This inversion suggests that investors, particularly institutional ones, are aggressively chasing 365-day paper, valuing ...