SAT, OCT 07 2023-theGBJournal| The FGN Bonds market traded on a calm note with a bearish undertone as offers were seen on the mid to long end of the curve with a handful of demand on the short end of the curve.
However, average benchmark yield inched higher by 1 bp, closing the week at 14.66%
Over the medium term, Cordros Research analyst tells theGBJournal that they expect yields in the FGN bond secondary market to remain elevated, driven by the sustained imbalance in the demand and supply dynamics.
However, we highlight that deliberate actions by the DMO to keep borrowing costs moderate remain a downside factor.
Meanwhile, the FGN Eurobond market exhibited bearish sentiment as a result of the consecutive release of US labor reports throughout the week.
These further reinforced expectations of an impending interest rate hike by the Federal Reserve. Consequently, the average benchmark yield surged by 76 bps week-on-week, reaching 12.48%.
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