…FGN Bonds yield rises by 41 bps, closing the week at 15.05%
SAT, OCT 28 2023-theGBJournal|The FGN Bonds market traded on a bearish mode all week as offers were seen on the mid to long end of the curve with only a handful of demand on the short end of the curve.
Thus, average benchmark yield inched higher by 41 bps, closing the week at 15.05%.
”We foresee a continuation of this trend in the upcoming week,” says analysts at Comercio Partners Research
Meanwhile, the FGN Eurobonds kicked off the week on a positive note, buoyed by the Finance Minister’s announcement of an anticipated $10 billion injection into the economy, which sparked heightened buying interest.
This bullish sentiment remained intact throughout the week, despite Federal Reserve Chair Powell’s guarded stance, the US posting better-than-expected Q3 GDP results at 4.90% (versus the projected 4.20% and the previous Q2 figure of 2.10%), and the US PCE figures aligning with market expectations at 3.70% (compared to the previous figure of 3.80%).
The average benchmark yield concluded the week 81 bps lower at 11.85%.
As we look ahead, we foresee a prudent approach in the forthcoming session.
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