FRI 15 APRIL, 2022-theGBJournal | Like the prior week, bearish sentiments dominated the treasury bonds secondary market, as demand for FGN bonds remained tepid amid continued profit-taking activities on selected instruments.
Thus, the average yield expanded by 7bps w/w to 11.1%. Specifically, we witnessed profit-taking across the short (+21bps) and long (+3bps) ends of the benchmark curve, following sell-offs of the JAN-2026 (+55bps) and MAR-2035 (+17bps) bonds, respectively. Meanwhile, the average yield was flat at the mid segment.
We maintain our view of an uptick in bond yields in the medium term, especially as we start a liquidity stiffened Q2-22, with the FGN’s borrowing plan (NGN675 billion) for Q2-2022 pointing towards an elevated supply.
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