SAT 01 JAN, 2022-theGBJournal– The Treasury bonds secondary market continued trading with mixed sentiments, although with a bullish bias, following the persistently lower demand as investors opted for non-sovereign instruments.
A total of 7,718 units valued at N8.003 million were traded this week in 6 deals compared with a total of 12,047 units valued at N11.512 million transacted last week in 12 deals.
The average yield consequently pared by 1bp to 11.6%. Across the benchmark curve, the average yield declined at the short (-3bps) and long (-2bps) ends following demand for the APR-2023 (-7bps) and APR-2049 (-9bps) bonds, respectively but expanded at the mid (+2bps) segment as investors sold off the MAR-2027 (+7bps) bond.
In the first week of the new year, we expect yields to oscillate around current levels, as activities are likely to remain tepid due to the festivities. Also, we expect non-bank liquidity to be geared towards relatively higher non-sovereign instruments, thus tempering demand.
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