SUN 31 OCT, 2021-theGBJournal- Bullish sentiments returned to the Treasury Bonds secondary market last week as investors anticipated lower yields in the FI market following the outcome of the NTB auction, and cherry-picked on attractive offers as they looked to re-invest the liquidity from FGN bond coupon payments.
Consequently, the average yield contracted by 8bps to 11.3%. Across the benchmark curve, the average yield expanded at the short (+7bps) end as investors upwardly repriced the JAN-2026 (+46bps) bond but contracted at the mid (-25bps) and long (-6bps) segments following demand for the NOV-2029 (-33bps) and JUL-2034 (-18bps) bonds, respectively.
In the face of reduced supply of instruments in Q4 and deliberate efforts by the DMO to reduce the government’s domestic borrowing cost, we maintain our expectations of lower average yields in the short term.
A total of 47,577 units valued at N50.350 million were traded last week in 32 deals compared with a total of 12,256 units valued at N12.227 million transacted previous week in 19 deals.
Meanwhile, LFZC Funding SPV Plc listed its N10,500,000,000 Series 1, 13.25% 20-years Senior Guaranteed Fixed Rate Infrastructure Bonds Due 2041 under the LFCZ Funding SPV Plc’s N50,000,000,000 Bond Issuance Program, on the Nigerian Exchange Limited on Thursday, 28 October 2021.
Besides, additional units of the Federal Government of Nigeria (FGN) Bonds issued in October 2021 were listed on the Nigerian Exchange Limited on Thursday, 28 October 2021-
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