Bond market: Total market turnover declines by 72.03% to ¢78.75m

Trading activity on the secondary bond market lost steam last week as the 4-year and 5-year new bonds registered lower transactions than the preceding week.

According to trading results, a total face value of ¢78.75 million, representing 72.03% decline week-on-week changed hands across the market, with the new bonds dominating activity.

The new bonds dominated activity, with most trades closing around the 97% to 99.8% price range.

Together with treasury bills, the aggregate turnover for the week was ¢995 million.

Instruments at the front end of the yield curve traded around an estimated yield of 10.67% (-148 basis points week-on-week).

Some market watchers and analysts believe the government’s reassurance to honour obligations on the old bonds could present some upside to trading activity in the secondary bond market this week.

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