SAT DEC 07 2024-theGBJournal| In line with expectations, the FGN bond secondary market was quiet this week as investors remained on the sidelines in anticipation of the last auction of the year.
The average yield inched higher by 2bps to 19.5%. Across the benchmark curve, the average yield increased at the short (+4bps) end, following selloffs of the JAN-2026 (+13bps) bond, while it pared at the mid (-1bp) segment, driven by demand for the FEB-2031 (-5bps) bond.
The average yield was unchanged at the long end.
We still expect cautious trading next week as investors anticipate the release of the December bond auction circular.
Meanwhile, analysts at Cordros Research maintains their short-term expectation of yields remaining elevated consequent to anticipated monetary policy administration globally and domestically and sustained imbalance in the demand and supply dynamics.
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