The domestic bond secondary market experienced bullish sentiment last week, with the result from the bond auction which was held on (Monday 19-Aug-24), setting the tone for the market trajectory. Consequently, average yield fell by 8bps w-o-w to close the week at 19.62% from 19.70% the previous week.
In details, demand was observed majorly at the short end of the curve, as average yield dipped by 16bps, while the mid, and long ends fell 6bps, and 3bps respectively. Specifically, the 23-MAR-2025, 15-MAY-2033 and 21-FEB-2034 maturities declined by 143bps, 43bps and 45bps sequentially.
At the PMA held on Monday 19-AUG-24, the Debt Management Office (DMO) offered a total of ₦190.00bn across the FGN APR 2029, FGN FEB 2031 and FGN MAY 2033 instruments.
Going into the week, we anticipate tight liquidity would drive negative market sentiment. We therefore advise investors to take advantage of maturities with relatively attractive yields across the curve.
