SAT, 14 MAY, 2022-theGBJournal | Proceedings in the Treasury bills secondary market turned bullish this week as investors cherry-picked instruments with attractive yields across the bond curve.
Consequently, the average yield dipped by 3bps to 11.2%. Across the benchmark curve, the average yield contracted at the short (-1bp), and long (-6bps) ends as investors took a keen interest in the JAN-2026 (-26bps) and APR-2037 (-33bps) bonds, respectively.
In the coming week, we expect the outcome of the May 2022 FGN auction holding on Monday (May 16) to influence the direction of yields in the bonds secondary market.
At the auction, the DMO will be offering instruments worth NGN150billion through re-openings of the 13.53% FGN MAR 2025, 12.5000% FGN APR 2032 and 13.0000% FGN JAN 2042 bonds.
In the medium term, we maintain our stance of uptick in yields as the FGN’s borrowing plan for 2022FY points to elevated supply.
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