SAT 05 MARCH, 2022-theGBJournal |Trading in the Treasury bonds secondary market ended the week on a bullish note, still mirroring sentiments at recent primary market auctions, with the average yield settling down by 50bps to 10.6%.
We highlight that the buying activity was spread across the benchmark curve, as the average yield declined at the short (-41bps), mid (-84bps), and long (-18bps) segments following interests in attractive yields of the MAR-2024 (-68bps), JUL-2030 (-153bps) and MAR-2035 (-54bps) bonds, respectively.
We envisage reinvestment of funds from maturities will continue to drive demand from investors and push yields lower next week.
Cordros Research analysts say they will maintain their medium-term view that the FG’s significant frontloading of borrowings for the year in H1-22 will result in an uptick in bond yields, as investors demand higher yields in the face of elevated supply.
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