SAT, NOV 04 2023-theGBJournal|Treasury bonds secondary market traded with bearish sentiments as players took short positions on some instruments across the short and mid curve.
As a result, the average yield advanced by 74bps to 15.6%. Across the benchmark curve, the average yield expanded across the short (+238bps), mid (+21bps), and long (+29bps) segments due to the profit-taking activities on the MAR-2024 (+695bps), APR-2032 (+34bps), and JAN-2042 (+70bps) bonds, respectively.
Next week, we expect cautious trading in the FGN bond market as investors await guidance on the monetary policy decision.
Over the short term, we maintain our expectation of higher yields, driven by the sustained imbalance in the demand and supply dynamics, amid deliberate actions by the DMO to keep borrowing costs moderate.
Meanwhile, the FGN Eurobonds traded the week on a bullish mode as the reports released during the week continued to support improved buying interest.
The average benchmark yield concluded the week 100 bps lower at 10.85%.
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