SAT 08 JAN, 2022-theGBJournal- Trading in the Treasury bonds secondary market opened the first week of 2022 on a bearish note, as investors upwardly repriced select instruments amid tepid demand.
Consequently, the average yield expanded slightly by 2bps to 11.6%. Across the benchmark curve, the average yield closed higher at the short (+12bps) and long (+5bps) ends due to sell pressures on the JAN-2026 (+23bps) and APR-2049 (+40bps) bonds, respectively but declined at the mid (-3bps) segment as investors demanded the FEB-2028 (-11bps) bond.
In the short term, we expect FGN bond yields to oscillate around current levels, pending clarity from the Debt Management Office (DMO) regarding the execution of the FG’s domestic borrowing plan for 2022. We believe the publication of the FGN bond issuance calendar for Q1-22 will provide the needed clarity.
Twitter-@theGBJournal|Facebook-The Government and Business Journal|email: govandbusinessj@gmail.com| info@govbusinessjournal.ng
