…Also offers was witnessed on the short end of the curve but little-to-no bids to match.
SAT, MAR 09 2024-theGBJournal| The FGN local bond Market traded on a subdued note this week, sustaining the bearish momentum from prior weeks.
However, improved offers were seen on the 2033 and FEB 2034 bonds at 17.50% and 19.05%. We also saw demand on the 2053 bond, bid at 18.30% while offers remained scarce.
Also offers was witnessed on the short end of the curve but little-to-no bids to match. Week-on-week, the average benchmark yield gained 113bps to 18.98%. Week-on-week, the average benchmark yield rose 111bps to 18.39%.
The FGN Eurobond market was characterized by mixed sentiments. We saw a bullish momentum as risk off sentiments persisted.
We had several data come out this week such as the ISM services PMI which printed at 52.6 against the expectation of 53. Jerome Powell stated during his testimony this week that though inflation has eased without any significant spikes in unemployment, it remains above the 2% target.
Also, we saw the initial jobless claims stay unchanged at 217K versus the consensus of 215K. The Nonfarm Payroll data showed that 275K jobs were added against the 200k estimate while unemployment rate rose 3.9% vs 3.70% consensus.
Furthermore, average hourly earnings rose 0.1% MoM vs est. 0.2%. Ultimately, the bulls dominated as the average benchmark yield dipped 14bps week-on-week, settling at 9.62%.
Analysts at Comercio Partners Research say they expect the bullish trend to persist.
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