SAT FEB 08 2025-theGBJournal| The FGN bond secondary market was bullish this week in line with expectations, underpinned by renewed interest in the JAN-2035 bond, which declined by 92bps during the week.
The average yield decreased by 16bps to 20.5% by close of trading Friday.
Across the benchmark curve, the average yield decreased at the short (-15bps) and mid (-28bps) segments, driven by demand for the JAN-2026 (-113bps) and JUN-2033 (-54bps) bonds respectively, while the average yield closed flat at the long end.
Next week, we anticipate sustained investor interest in high-yielding bonds, precisely the new 10-year bond.
Over the medium term, we expect a moderation in yields consequent on the anticipated direction of monetary policy administration and (2) slower borrowing pace by the Federal Government.
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