MON JAN 13 2025-theGBJournal| The Treasury bond secondary market traded with bearish sentiments on Monday, with the average yield expanding 3bps to 19.5%, as market players anticipate Q1-25 FGN bond calendar and release of December’s Consumer Price (CPI) data.
Analysts expect the December’s CPI data to influence the direction of market activities during the week, as they maintain medium-term expectation of elevated yields consequent on anticipated monetary policy administration globally and domestically, and sustained imbalance in the demand and supply dynamics.
Across the benchmark curve, the average yield advanced at the short (+7bps) and mid (+5bps) segments following selloffs of the APR-2029 (+20bps) and JUL-2030 (+13bps) bonds, respectively.
The average yield closed flat at the long end.
Activities in the NTB secondary market were bearish, as the average yield expanded by 2bps to 25.2%.
Across the curve, the average yield expanded at the short (+9bps) and long (+1bp) ends, following sell pressures on the 42DTM (+92bps) and 315DTM (+62bps) bills, respectively, but contracted at the mid (-5bps) segment due to the demand for the 147DTM (-6bps) bill.
In contrast, the average yield contracted by 6bps to 27.8% in the OMO segment.
The overnight lending rate expanded by 473bps to 32.6% in the absence of any significant funding pressure on the system.
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