Money Market

Bond: Bearish Sentiment Resurfaces

The domestic bond secondary market faced a mild sell pressure last week, as the release of the third quarter FGN Bond calendar sparked cautious investor reactions with some selloffs observed on the newly offered maturities (FGN 2029, 2031 & 2033). Overall, the average benchmark yield advanced 2bps w-o-w to stop at 18.77% from 18.75% recorded in the past week.

In more details, selloffs were recorded on the short- and mid-end of the curve, as average yield advanced 4bps and 2bps to close at 18.82% and 19.35% respectively. This is evident in the MAR-2025 (17bps) and MAY-2033 (30bps) instruments.

This week, we anticipate a negative outing in the domestic bond market, as market participants continue to reprice instruments in anticipation of improved yield offerings. 

Thus, we advise investors to position in relatively attractive instruments across the yield curve while also remaining alert for possible corporate offerings.


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