…Week-on-week, the FGN Eurobond average benchmark yields slid 6bps, settling at 9.88%
SAT JULY 06 2024-theGBJournal|The FGN local bond Market exhibited a subdued tone throughout the week. At the start of the week, we witnessed demand for the May 2033 bond bid at 21.15% while offers stood at 21.10%.
However, there was a reversal of this trend with bids as high as 21.40% following the release of the Q3 Bond auction calendar which showed 80-120 billion on offer per maturity across the 29s, 31s and 33s.
Furthermore, we saw trades executed on the 34s at 20.70% while the 53s was quoted 17.75/17.60.
In addition, we saw the 31s and new 29s offered at 20.25% and 19.50%, accordingly. Week-on-week, the average benchmark yield rose by a negligible 1bp to 18.68%.
Similarly, the FGN Eurobond market traded on mixed sentiments in the week under review.
Bearish sentiments ensued despite the ISM Manufacturing PMI printing at 48.5 vs 49.1 expected and Powell’s speech, which underscored progress on inflation while affirming the robustness of the labor market.
The bullish bias was influenced by the initial jobless claims which printed higher at 238K vs 235K expected, in addition to the ISM Services PMI printing below expectations (48.8 vs 52.5) and the ADP Employment Change data (150K Vs. 160K expected).
In conclusion, the final session of the week was bearish following the release of the Nonfarm Payroll data which showed that 206K jobs were added against 190K expected.
Week-on-week, the FGN Eurobond average benchmark yields slid 6bps, settling at 9.88%.
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