Bond market: Activity weakens as turnover fell by 58%

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The secondary market activity weakened, reversing the previous week’s 51.80% gain, as turnover fell 58.18%

Trading remained concentrated in the belly of the curve, with 2031–2034 maturities accounting for 58.14% of turnover at a weighted-average yield of 14.39%.

The 2027–2030 segment contributed 38.25% at an average yield of 13.02%.

The activity at the long end remained subdued, with post-2035 maturities accounting for just 3.61% of turnover at an average yield of 15.07%.

Databank Research attributed the softer secondary-market activity to the ex-coupon period, as investors deferred reinvestment pending coupon settlement.

Following the liquidity injection later in the week, a portion of the proceeds rotated into the primary treasury bill market, further dampening bond-market demand.

“Looking ahead, we expect secondary-market activity to remain resilient, supported by coupon reinvestment flows and the spillover of unmet T-bill demand”, said Databank Research.

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Bond market

Databank Research

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