The transactions in the Nigerian secondary bond market soared by 71% during the week. A turnover of 560.95 million units valued at N574 billion in 3,180 deals as against a total of 328.45 million units worth N334.35 billion exchanged in 1,927 deals in the preceding week. The market capitalization rose by 0.76% to end the week at N9,156.05 billion. The activity was driven by 4th FGN Bond Series 14 (2010) with a traded volume of 55.8 million units valued at N56.06 billion in 322 deals. During the week, the bond market was active with the yields pointing southwards and the bond price moved in an opposite direction.
The FGN bond index was inched up by 107 basis points to end the week at 1083.27 points. The index weekly returns and the year-to-date returns marginally increased by 50 and 112 basis points to 1.07% and 6.19% respectively.
The yields on the 7-year bonds due in March, 2014 with a coupon rate of 10.75% slumped by 122 basis points to 8.09%. Also, the yields on 5-year, 10-year and 20-year bonds bearing coupon rate of 10.50%, 9.50% and 12.49% fell by 64, 40 and 16 basis points to end the week at 10.13%, 10.73% and 11.78%. However, the yield on 3-year bonds was wavering during the week.
The yields on the 7-year bonds due in March, 2014 with a coupon rate of 10.75% slumped by 122 basis points to 8.09%. Also, the yields on 5-year, 10-year and 20-year bonds bearing coupon rate of 10.50%, 9.50% and 12.49% fell by 64, 40 and 16 basis points to end the week at 10.13%, 10.73% and 11.78%. However, the yield on 3-year bonds was wavering during the week.
For liquidity management, the Nigerian Treasury bills worth N60.04 billion was auctioned at the primary market segment which made up of N10 billion of 91-days, N20.04 billion of 182-days,and N30 billion of 364-days at the stop rate of 3.64%, 5.699% and 5.75% respectively. In the secondary market, the yields on Nigerian Treasury bills were active with the two new maturities brought into the market.
