SAT 06 NOV, 2021- theGBJournal- The Treasury Bonds secondary market traded with mixed sentiments, albeit with a bearish bias as investors traded in lower volumes following the unclear direction of FI yields at the primary market and continued to cherry-pick attractive instruments, especially at the long end.
Consequently, the average yield inched higher by 3bps to 11.3%. Across the benchmark curve, the average yield was unchanged at the short end but expanded at the mid (+9bps) segment as more sell pressures were witnessed on the NOV-2029 (+19bps) bond.
Meanwhile, the average yield contracted at the long (-4bps) end following demand for the JUL-2045 (-54bps) bond.
A total of 32,626 units valued at N33.332 million were traded this week in 16 deals compared with a total of 47,577 units valued at N50.350 million transacted last week in 32 deals.
In the short term, we maintain our view of lower yields given our expectations of limited supply and deliberate efforts by the DMO to reduce domestic borrowing costs for the government.
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