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Bonds| Yield declines by 17bps to 10.4% and investors continue to take positions in attractive instruments

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SAT 12 MARCH, 2022-theGBJournal- The Treasury bonds secondary market sustained its bullish trading this week, as investors continued to take positions in attractive instruments ahead of further anticipated yield declines. 

Accordingly, the average yield contracted by 17bps to 10.4%. Across the benchmark curve, the average yield declined at the short (-22bps), mid (-27bps) and long (-8bps) segments as investors demanded the APR-2023 (-154bps), JUL-2034 (-45bps) and MAR-2036 (-33bps) bonds, respectively.

It is envisaged that the reinvestment of coupon payments will support demand from investors and push yields lower next week.

Analysts at Cordros Research are maintaining medium-term view that the FG’s significant frontloading of borrowings for the year in H1-22 will result in an uptick in bond yields, as investors demand higher yields in the face of elevated supply.

Twitter-@theGBJournal|Facebook-The Government and Business Journal|email: gbj@govbusinessjournal.ng|govandbusinessj@gmail.com

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