…Meanwhile, the FGN Eurobond market traded on mixed sentiments this week. We saw a bullish trend triggered by the $500 million released by the CBN for the FX backlog
SAT, FEB 03 2024-theGBJournal| The Debt Management Office (DMO) offered N360 billion across the 27s, 29s, 33s and 38 at the FGN Bond market this week.
However, N418.21 billion was sold while the total subscription stood at N604.57 billion. The stop rate on the 27s closed at 15.00% while other bonds closed at same levels as the previous auction (15.50%, 16.00%, 16.50%). Activity was particularly centered around the auction bonds.
The bears dominated the market as we saw the 27s trade as high as 16.10% on the bid, the 38s as high as 17.50% on the bid and the 53s bid at 17.35%.
The average benchmark yields increased by 66bps, settling at 14.88%.
”Given the current market conditions, we expect the bearish trend to persist,” says analysts at Comercio Partners.
Meanwhile, the FGN Eurobond market traded on mixed sentiments this week. We saw a bullish trend triggered by the $500 million released by the CBN for the FX backlog, high oil prices and the expectation of a dovish FED.
However, there was a reversal of this trend as the Fed statement pushed back on the possibility of rate cuts in March with the Nonfarm Payroll showing that 353k jobs were added against expectations of 180k.
Furthermore, the bulls reigned as the average benchmark yield slid 16bps week-on-week, settling at 9.81%.
Moving forward, we expect a bear market while we await the ISM Services PMI data.
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