SAT, 05 NOV, 2022-theGBJournal| Bearish sentiments persisted in the FGN bonds secondary market this week, as the average yield across all instruments expanded by 20bps to 14.5%.
A total of 121,712 units valued at N119.220 million were traded this week in 16 deals compared with a total of 1,963 units valued at N1.736 million transacted last week 6 deals.
We highlight that investors’ anticipation of higher bond yields drove sell-offs across the short and mid-spectrum of the curve this week. Consequently, across the benchmark curve, the average yield inched higher at the short (+38bps) and mid (+35bps) segments, following profit-taking on the MAR-2024 (+105bps) and NOV-2029 (+37bps) bonds, respectively. Meanwhile, the average yield contracted at the long (-6bps) end, following investors’ interest in the MAR-2035 (-34bps) bond.
This week, sentiments in the NTB secondary market turned bullish following the healthy system liquidity as local banks sought to sterilize their idle cash by demanding T-bills.
As a result, the average yield across all instruments contracted by 6bps to 10.0%. Across the market segments, the average yield contracted both at the NTB and OMO secondary market by 7bps to 11.9% and 2bps to 10.2%, respectively.
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