Meanwhile, yields in Uganda are expected to fall due to strong demand following an oversubscribed bond auction on Wednesday.

Zambian bonds are likely to be oversubscribed at an auction today as Africa's largest copper producer heads into a presidential election next week that investors and analysts expect to be peaceful.

Although yields have risen at previous auctions due to pre-election nervousness, confidence has risen of late and is likely to push yields down, said Munalula Mate, head of markets at Citibank Zambia.

"Part of the reason rates have been pushing up is because of election jitters," said Mate. "A lot of investors are investing short-term, but there seems to be a consensus that this election is likely to pass event-free, bringing the confidence back."

The Bank of Zambia will offer 300 billion kwacha ($62 million) of 2-, 3- and 5-year bonds today.

Although yields on the 2- and 3-year bonds rose significantly at an auction last month, healthy demand would likely cap any rises this time, Mate said. He expected the 5-year to be oversubscribed by more than 200 percent and the other two bonds by between 100 and 150 percent.

Copyright Reuters, 2011