Trade activity in the secondary bond market remained modest amid banks’ end-of-month rebalancing. Activity was spread across all tenors.

The February 2027 and Aug 2027 led the activity, accounting for 44% of trades at an average Yield-To-Maturity (YTM) of 20.9%.

Overall, the shorter end of the LCY curve contributed 60% of volumes at an average YTM of 20%, while the belly and tail segments made up the remaining 40%.

This cleared at an average YTM of 21.33%.

Databank Research said it expects trade activity to pick up as expectations for a bond market reopening gain momentum.

This will be supported by the positive macroeconomic signals highlighted in the Monetary Policy Committee’s 124th briefing.