At the start of the trading week, concerns about a possible contagion effect coming from Chinese developer, Evergrande, sent the U.S. equities market diving. Losses were, however, reversed by the end of the trading week, when the market ripped higher. Major stock indexes closed with wins for the week.
With the Central Bank inching closer to ending its USD120.00bn monthly bond-buying program much sooner than later, the yield on the 10-year U.S. Treasury Note shot up to 1.46% by the end of the week, after trading at about 1.31% during the week.
Markets could be in for more volatility in the week ahead after a wild week for both stocks and bonds. In the coming week, the central bank takes the spotlight, again, as the Central Bank Chairman Jerome Powell, and a host of other central bank officials, speak at events.
While on the domestic front, The Nigerian Equities market held on to its winning streak, returning 0.05% in gains, this week, for investors. As a result, the market’s return for the year, improved to -3.25% (from -3.29% the previous week). Across sectors, all sectors ended the trading week with wins, save for the banking and consumer goods sector.
At the Eurobond market, the Federal government successfully raised USD4.00bn following its offer. Bids from investors peaked at USD12.10bn. With encouraging investor interest, the Debt Management Office (DMO) announced its preparations for a second Eurobond round. In the same light, ACCESS also announced its intent to tap, again, into the Eurobond market following its recent successful raise.
A bond auction was held at the fixed income primary market, with rates printing at 11.60%, 12.75%, and 13.00% for 2028, 2036, and 2050 notes respectively. It was a mixed mood at the fixed income secondary market as average bonds yield dipped to 10.69% from 10.72% while average T-bills yield rose to 5.46% from 5.13% last week.