SAT AUG 10 2024-theGBJournal|Activities in the Treasury bonds secondary market remained bearish, driven by sell pressures on short- and mid-dated papers. Thus, the average yield across instruments advanced by 28bps to 20.1%.
Across the benchmark curve, the average yield expanded at the short (+64bps) and mid (+21bps) segments, as investors sold off the MAR-2025 (+158bps) and JUL-2030 (+39bps) bonds, respectively.
Meanwhile, the average yield contracted at the long (-6bps) end following demand for the JUL-2034 (-41bps) bond.
Following the reschedule of the August 2024 FGN bond auction to 19 August by the DMO on Thursday, we expect players in the secondary market to likely reshuffle their portfolio next week ahead of the new auction date.
Elsewhere, we maintain our medium-term expectation of yields remaining elevated consequent to domestic monetary policy administration and sustained imbalance in the demand and supply dynamics due to significant fiscal deficit.
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