SAT SEPT 07 2024-theGBJournal| The FGN Bonds Market witnessed quite a bullish start at the beginning of the week with trades consummated on the May 33s and 31s at 19.60% and 19.35%, respectively.
We also saw the Feb 34s bid at 19.40% and offered 19.15%. However, as the week progressed, there was a retracement with the May 33s quoted 19.90/19.75 and the Feb 34s at 19.80/19.50.
Furthermore, 2031 bond was bid 20.00% and offered at 19.65% while trades were consummated on the newly issued 2029 bond and 38s at 19.35% and 17.30%, respectively. Week-on-week, the average benchmark yield declined by 22bps to close at 18.44%.
In the coming week, a possible downward repricing of yields is envisaged, particularly on short-term instruments spurred by the expected downward repricing in the NTB secondary market.
Meanwhile, we maintain our medium-term expectation of elevated yields consequent on anticipated monetary policy administration globally and domestically, and sustained imbalance in the demand and supply dynamics
The FGN Eurobond Market traded on mixed sentiments this week. It was a data filled week from the United States.
The ISM Manufacturing PMI printed at 47.2 vs 47.5 expected and 46.8 prev. A bit of hope ensued when the JOLTS Job Openings Data printed at 7.67M vs. 8.09M forecast and 8.18M prior.
The ADP Employment data printed at 99k vs. 144 forecast and 122k prior, while Unemployment Claims came in at 227k vs 231k forecast and prior. In addition, the Nonfarm Payroll data showed that 142K jobs were added against 160K forecast and 89K prior while unemployment rate printed at 4.2% as expected and 4.3% prior.
Lower oil prices continued to pull the market down on the back of weaker demand and increased supply. Week-on-week, the average benchmark yield appreciated by 19bps to close at 9.71%
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