The domestic bond secondary market maintained its bearish run last week, as the postponement of the July FGN Bonds Primary Market Auction (PMA) from 15th July to 22nd July tilted investors sentiment towards a negative bias. As a result, Average yield increased by 49bps W-o-W to 19.26% from 18.77% recorded in the past week.
A further breakdown shows that selloffs were witnessed across all tenors, as average yields at the short, mid, and long ends of the curve expanded 139bps, 43bps, and 6bps, W-o-W respectively. This is evident in the MAR-2025, JUN-2033, and JUN-2053 instruments, as yield declined 330bps, 139bps, and 51bps w-o-w respectively.
This week, we expect the negative sentiment to persist. We therefore advice investors to take advantage of maturities with relatively attractive offers in the secondary market particularly at the short end of the curve.
Afrinvest
