SAT JUNE 15 2024-theGBJournal|The benchmark FGN bond note yield rose on Friday as players stayed on the sidelines, while reshuffling their portfolio in preparation for the June auction which has now been rescheduled to June 24 by the Debt Management Office (DMO).
Across the benchmark curve, the average yield expanded at the short (+5bps) and mid (+8bps) segments driven by sell pressures on the MAR-2025 (+14bps) and FEB-2031 (+15bps) bonds, respectively.
Conversely, the average yield closed flat at the long end.
Meanwhile, medium-term expectation of elevated yields remain given the sustained imbalance in the demand and supply dynamic.
At the FGN Eurobond Market, despite the positive US CPI data indicating a cooling inflation, FGN Eurobonds opened in a bearish mode due to risk-off sentiments triggered by the FOMC decision to reduce its Dotplot analysis from three cuts to one cut, and ongoing political tensions in France.
Consequently, the average benchmark yield increased by 9 bps week over week, settling at 9.75%.
This trend is expected to persist.
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