July 26 (Lagos) - Yields of U.S. Treasuries rose today, as weekly jobless claims data released by the U.S. Department of Labor showed a better-than-expected figure of 206,000 claims vs market analysts’ expectation of 219,000 claims.
This came at the same time the European Central Bank (ECB) President - Mario Draghi gave his speech at the close of the ECB monetary policy meeting, indicating plans by the ECB to implement additional monetary stimulus in the Eurozone area in 2019. However, not enough clarity was provided on the timing and size of easing and stimulus measures to be implemented.
Analysts at
AIICO Capital expect investors to shift focus to next week’s meeting of the Federal Open Market Committee (FOMC) of U.S. Federal Reserve bank, with slightly depressed expectation of the size of a potential cut to its benchmark interest rate, following today’s ambiguity in the timing and size of the ECB’s expected stimulus. We also expect investors keen interest in the U.S. GDP growth rate data for Q2 expected to be released tomorrow afternoon.
1. FGN Eurobonds
Sustained demand in the nation’s Eurobonds market drove yields lower by -10bps today, with the November 2027 maturity closing at 5.87% from 6.01% as investors continue to re-invest proceeds of the $471 million inflow from repaid First bank of Nigeria July 2021s bond.
We expect some profit taking to begin to set in as investors take advantage of the recent rally in prices, with some light sell-off noticed towards close of trading today.
reporting for easykobo.com on Friday, July 26 2019 from Lagos, Nigeria
Source - analysts at
AIICO Capital ltd in V.I