SAT, NOV 18 2023-theGBJournal|The FGN Bonds market exhibited a bearish stance throughout the week. At the start, the bearish sentiments was buoyed by expectations of the bonds auction result which held on Monday.
At the auction, the Debt Management Office (DMO) offered N360 billion worth of across the four instruments. However, it bonds sold N434.5 billion against a subscription of N445.30 billion.
Compared to the previous auction, the average stop rate surged by 110bps, 125bps, 170bps and 140bps each to 16.00%, 17.00%, 17.50% and 18.00% respectively.
Taking a cue from the auction results, there was a retracement in bond prices in the secondary market which caused yields to trend higher to the end of the week.
This bearish sentiment was also supported by the anticipation of the outcomes of the MPC meeting slated for the next week. Consequently, the average benchmark yield concluded the week at 15.95%, reflecting an 11 bps uptick on a week-over-week (WoW) basis.
Meanwhile, the FGN Eurobonds experienced a bullish trajectory throughout the week, bolstered by positive reports from the US that sustained heightened buying interest.
The average benchmark yield closed the week with a 25 basis points decrease, settling at 10.84%.
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