SAT JULY 27 2024-theGBJournal| The FGN local bond Market commenced the week with the Bond auction.
At the FGN Bond auction, the Debt Management Office (DMO) offered N300 billion across the 2029, 2031 and 2033 tenors with total subscription amounting to N279.67 billion and total allotment of N225.72 billion.
Stop rates closed at 19.89%, 21.00%, and 21.98%, representing 25bps, 81bps, and 48bps increase on the 29s, 31s and 33s, respectively.
We saw the 31s trade at 21.20% while the new 33s was quoted at 22.60/22.35. Week-on-week, the average benchmark yield rose 5bps to 19.14%.
Similarly, The FGN Eurobond market kicked off on a bearish note as selling pressures persisted.
The bearish trend persisted after the release of the U.S S&P Global Services PMI data which printed at 56.0 vs 54.9 estimated and 55.3 prior.
In contrast, the U.S S&P Global Manufacturing PMI came in at 49.5 (estimated 51.6; previous 51.6).
The market also saw the release of the GDP figures which printed at 2.80% compared to 2.0% expected while initial Jobless Claims came in at 235K versus the 237K anticipated. Week-on-week, the average benchmark yields gained 8bps, settling at 9.95%.
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