Market Snapshot
Disinflation continues, but price stability is not yet guaranteed.
Short-term yields moved lower from the prior auction.
Investor confidence is improving from a low base.
Education and liquidity remain the main adoption constraints.
What changed this week
Inflation continues to trend downward, though the pace of disinflation is beginning to moderate. Short-term T-bill yields declined, improving real returns but lowering future income expectations if the trend continues.
What this means for investors
- Falling inflation is improving the real-return profile of Treasury Bills.
- Short-term T-bills may become less attractive if yields continue declining.
- Banks remain the dominant listed equity exposure on the ESX.
- Fixed-income products currently offer lower volatility than equities for first-time investors.
Risk Watch
- Secondary-market liquidity remains limited.
- Listed equity coverage is still concentrated in banking institutions.
- Inflation remains above long-term stability levels.
- Regulatory and market-infrastructure reforms are still evolving.
Beginner explanation
A Treasury Bill is a short-term government security. Investors lend money to the government and receive a fixed return at maturity.
Sources and disclaimer
Sources: National Bank of Ethiopia, Ethiopian Securities Exchange, and Ethiopian Statistical Service. Data is informational and may be delayed or revised. This article is educational, not investment advice.