SAT 16 OCT, 2021-theGBJournal- The Treasury bonds secondary market closed the week with mixed sentiments, albeit with a bullish tilt, as investors remained on the sidelines awaiting further clarity on the direction of yields and refocused their attention to corporate instruments. Consequently, the average yield pared by 1bp to 11.3%.
Across the benchmark curve, the average yield expanded at the short (+2bps) and long (+2bps) ends as investors sold off the JAN-2026 (+20bps) and MAR-2035 (+12bps) bonds, respectively. However, it declined at the mid (-10bps) segment following demand for the MAR-2027 (-31bps) bond.
Next week, we expect the outcome of the bond auction to shape market sentiments and the direction of yields.
At the auction, the DMO will be offering instruments worth c. NGN150.00 billion through re-openings of the 12.50% FGN JAN 2026, 16.2499% FGN APR 2037 and 12.98% FGN MAR 2050 bonds.
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