SAT 18 SEPT, 2021-theGBJournal- Trading in the Treasury Bonds secondary market was bearish, following sell-offs in the early parts of the week from local and offshore investors, amid the uncertainty on the direction of yields.
We highlight that the result of the NTB auction eased the sell-offs, as the uptrend in yields reversed on Thursday and Friday. Consequently, the average yield expanded by 22bps to 11.3%.
Across the benchmark curve, the average yield expanded at the mid (-46bps) and long (+25bps) segments as investors sold off the MAR-2027 (+68bps) and APR-2049 (+63bps) bonds, respectively. Conversely, it declined at the short (-13bps) end following demand for the APR-2023 (-49bps) bond.
In the coming week, we expect the outcome of the bond auction to shape market sentiments and the direction of yields. At the auction, the DMO will be offering instruments worth c.NGN150.00 billion through re-openings of the 13.98% FGN FEB 2028, 12.40% FGN MAR 2036 and 12.98% FGN MAR 2050 bonds.
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