How to Buy a Bond on the Secondary or OTC Market
Part 9/15: A Beginner’s Guide to Investing in Treasury Bonds & Bills
Missed the treasury auction? No problem! You can still buy a bond on the secondary market or Over-the-Counter (OTC) market, where already-issued bonds are traded between investors, banks, and other market participants.
Step 1: Find a Seller
Unlike the auction, where you buy directly from the government, in the secondary market, you buy from another investor or a bank. This is where Impala Market comes in!
Impala Market provides a platform where buyers, sellers, and dealers can see available secondary market trades and express interest before closing the deal. No more running around looking for a counterparty—Impala Market connects you to opportunities faster.
Step 2: Check the Price and Yield
Bond prices change daily based on market demand and interest rates. Your bank or Impala Market’s platform will show you real-time quotes.
If interest rates go up, bond prices fall (cheaper to buy).
If interest rates go down, bond prices rise (more expensive).
Step 3: Express Interest and Place Your Order
On Impala Market, you can express your interest to buy or sell bonds before finalizing the deal.
Your bank (primary dealer) then facilitates the transfer, and the bond is credited to your CDS account.
Why Buy on the Secondary Market?
No waiting for auctions – Buy anytime!
Access multiple bonds – Different maturities, different returns.
Easier trading with Impala Market – See trades, connect with dealers, and close deals faster.
Great for offshore investors – Seamless access to Uganda’s bond market.
With Impala Market, investing in bonds has never been easier. Now that you know how to buy, what if you want to sell a bond before maturity? Stay tuned for our next guide!
This is part of the series A Beginner’s Guide to Investing in Treasury Bills and Bonds.
Want to invest in Africa’s treasury markets? Impala Market helps you track opportunities, compare bond yields, and connect with buyers & sellers in the Over the Counter (OTC) market.
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