…At the auction, the DMO offered N190 billion across the 29s, 31s and 33s. However, N374.75 billion was sold against a total subscription of N460.18bn.
SAT AUG 24 2024-theGBJournal| The FGN Bond Market traded on a quiet note at the beginning of the week as focus was on the outcome of the bond auction.
Nevertheless, we saw trades consummated on the May 33s at 21.20%.
At the auction, the Debt Management Office (DMO) offered N190 billion across the 29s, 31s and 33s. However, N374.75 billion was sold against a total subscription of N460.18 billion.
These stop rates on the 29s inched up by 41bps to 20.30% while the 31s & 33s declined by 10 bps and 48 bps to 20.90% and 21.50% respectively. There were mild bearish sentiments shortly after the auction, but this was short lived as bullish sentiments ensued.
We saw trades consummated on the 33s as low as 20.90% and the 34s at 19.70%. Finally, the 29s and 53s exchanged hands at 20.10% and 18.20% respectively. Week-on-week, the average benchmark yield declined by 1bps to close at 19.31%.
Meanwhile, the FGN Eurobond Market traded on a calm note with a bullish tilt as investors continued to look ahead to Fed chair Powell speech.
The market remained in mild bullish territory as investors looked ahead to the FOMC minutes. Consequently, the minutes revealed that the vast majority saw September cut as likely.
Data from the United States this week showed that the initial jobless claims printed at 232K vs. 230K expected and 228K prior. Furthermore, the S&P global manufacturing PMI printed lower at 48.0 vs. 49.6 prior while the S&P Global Services PMI printed at 55.2 vs. 54 expected and 55 prior.
At Fed Chair Powell Speech, he stated that confidence has grown that inflation is on the path to 2% and the time has come for a policy adjustment.
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