SAT, SEPT 23 2023-theGBJournal |The Treasury Bills Market traded on mixed sentiments in the week under review with liquidity fluctuations. The Focus was on the long end of the curve, particularly the August and September bills.
For emphasis, the 5-Sept-24 bill was bid at 11.70% while offers stayed at 11.40%. Week-on-week, the average benchmark yield rose 55bps to 7.42%.
Investors say they expect a calm session ahead of the PMA slated for Wednesday.
Also, the FGN Bonds market traded on a calm note with a bullish undertone as demand was skewed to the short end of the curve while the long end remained muted.
The 2029 bond remained in demand, bid at 14.44% and offers at 14.33%. The 2032 maturity was quite offered today at 14.85% while bids were scarce.
Notably, the Central Bank of Nigeria issued an announcement regarding the postponement of the MPC meeting initially slated for the 25th and 26th of this month, with a forthcoming date to be communicated.
Week-on-week, the average benchmark yield rose 1bp to 14.65%. Similar trend is expected in the next trading session.
Meanwhile, the FGN Eurobond market displayed bullish sentiments as news of the newly appointed CBN Governor, Mr. Michael Cardoso remains positive news for the country in combination with the likelihood that the FEDs keep rates unchanged at the FOMC meeting.
However, there was a reversal of this trend in response to the FEDs indication that rates need to stay higher for longer, despite holding rates steady this month as expected. Week-on-week, the average benchmark yield rose 23bps to 11.33%.
We expect the negative momentum to persist, barring any significant events.
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