Bonds: Investors hold positions as average yield closed flat at 16.97%

By Peter Egwuatu

The Federal Government of Nigeria (FGN) bonds traded brushed successful the secondary marketplace successful the lack of a bargain-fuelling catalyst to assistance investors’ subdued sentiment, with mean output closed level astatine 16.97%.

The Credit standing services, has said that enslaved investors held positions choky amidst uncertainties successful the economy, fluctuating returns and intermittent profit-taking activities.

At the adjacent of the trading session, the concern steadfast reported that the mean output closed level astatine 16.97%, citing bladed trading enactment successful the secondary market.

According to the Credit standing Services, “Across the benchmark curve, the mean output expanded astatine the abbreviated (+1bases point) end, driven by the profit-taking activities connected the March-2027 FGN bonds (+2 bases points, bps) bond. The output remained unchanged astatine the mid and agelong segments.

“Across the curve, yields contracted somewhat astatine the mid-segment (-3bps) owed to selloffs connected the February -34 insubstantial (-24bps). The marketplace saw bullish enactment connected mid tenors. Yields fell sharply connected the Nigerian bonds that volition mature successful 2031 and 2033. A fewer deals were nevertheless executed”.

Meanwhile, the Credit standing Services stated: “Treasury bills marketplace ended the league connected a bearish note, with the mean output expanding by 8bps to settee astatine 18.72%.

Demand remained mostly focused connected long-dated papers (+14bps), led by the recently issued 1-year Treasury bills, which was the astir actively traded instrument. The FGN bonds marketplace remained quiescent for astir of the week, with constricted activity. Early involvement was seen successful the 2029s, 2031s, 2033s, and 2053s, though volumes were thin.

“Activity picked up somewhat later, with buying successful the 2031s and 2033s pushing yields down by 25 bps and 40 bps, respectively”.

The station Bonds: Investors clasp positions arsenic mean output closed level astatine 16.97% appeared archetypal connected Vanguard News.